Munich Re Earnings: Higher Major Losses but Overall Good Figures

We believe that, for the first quarter of 2023, Munich MUV2 has delivered strong results despite the higher losses that have affected it. Net profit so far this year has come in at EUR 1,271 million and the business has confirmed its full-year guidance of EUR 4.0 billion. There has been quite a marked walkdown in this target net income as the business has made the IFRS 17 transition. That is primarily as a result of a higher claims liability discounting unwind that has come about because of the movement from FY 2022 to FY 2023. Our full-year net income estimate stands at around EUR 4.5 billion and we continue to include a buyback of EUR 1 billion. We raise our fair value estimate to EUR 380 per share and maintain our no-moat rating.