The reinsurer Munich Re has presented good figures for 2022. 2023 should be even better. But the stock exchange reacted on Thursday with strong discounts. Investors had expected higher price increases in the core business of reinsurance. Actually, the current situation of the company is quite right: rising interest rates, moderate natural hazard claims and price increases, things could hardly have gone better. Despite Hurricane Ian, losses from natural catastrophes remained moderate. Profit for 2022 increased by 17 percent to 3.4 billion euros. The company intends to increase the dividend from EUR 11 to EUR 11.60. For 2023, CEO Joachim Wenning is even aiming for a profit after taxes of 4 billion euros. The fact that the share still lost is due to the meager price increases that Munich Re was able to push through in the contract negotiations for 2023. The individual adjustments amounted to only 1.3 percent, significantly less than in previous years. Some investors may also worry about how long the good run will last. CEO Joachim Wenning knows how cyclical his business is. As soon as high profits occur, fresh capital flows into the industry and ensures that margins are reduced. “If the prices are as attractive as they are now, fresh capital will flow in,” said Wenning. But he doesn’t see the danger in 2023, it will take another year or two.
Reinsurers – Munich Re fails to convince investors – Economy
