Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on MUENCHENER RUECKVER AG-REG. We currently have 8 research reports from 1 professional analysts.
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MUENCHENER RUECKVER AG-REG
MUENCHENER RUECKVER AG-REG
Good Q3 results lead to guidance upgrade
09 Nov 16
Net profit attributable to shareholders increased by 32% to €685m for Q3 16 compared to Q3 15. Gross premiums written were down by 1% at €12.3bn in Q3 16 compared to the same period last year. At constant currency, the premium volume would have slightly risen by 0.2%. Expenses for claims rose by 0.5% to €9.7bn in Q3 16. The technical result decreased by 5% to €817m for Q3 16 compared to Q3 15. The investment result increased by 54% to €1.86bn in Q3 16 compared to Q3 15. The annualised RoI was 3.4% for 9M 16 compared to 3.3% for the same period last year. The other non-operating result was a loss of €112m for Q3 16 compared to a loss of €97m in Q3 15. Pre-tax profit doubled to €848m for Q3 16. The tax rate was 19% for Q3 16 compared to a tax credit of €101m for Q3 15. This is the reason behind the lower increase of net profit for Q3 16 compared to pre-tax profit. Shareholders’ equity was up by 4.5% to €32.4bn at the end of September 2016 compared to the end of 2015. The return on equity was 8.5% for Q3 16 compared to 6.9% for Q3 15. Munich Re increased its profit outlook of €2.3bn for FY2016 after a net profit of €2.1bn for 9M 16. It now expects profit for FY2016 to exceed the old target significantly.
Q2 profit much ahead of consensus and guidance is likely an exception
09 Aug 16
Net profit attributable to shareholders decreased by 9% to €975m for Q2 16 compared to Q2 15, but it increased by 127% compared to Q1 16. Gross premiums written were down by 4% at €11.9bn in Q2 16 compared to the same period last year, at constant currency the premium volume would have fallen by 1.4%. Expenses for claims rose by 4% to €10.1bn in Q2 16. The technical result decreased by 2% to €934m for Q2 16 compared to Q2 15 but was much better than the loss of €219m for Q1 16. The investment result increased by 27% to €2.78bn in Q2 16 compared to Q2 16. The annualised RoI was 4.7% for Q2 16 compared to 4.1% for the same period last year. The other non-operating result was a loss of €120m for Q2 16 compared to a loss of €432m in Q2 15, mainly due to positive forex effects. Pre-tax profit declined by 4% to €1.28bn for Q2 16. The tax rate was 24% for Q2 16 compared to 19% for Q2 15. Shareholders’ equity was up by 3.4% to €32.0bn at the end of June 2016 compared to the end of 2015. The return on equity was 12.2% for Q2 16 and 13.1% for Q2 15 and 5.6% for Q1 16. Munich Re confirmed its guidance of €2.3bn for FY2016 (downgraded in May from a €2.3-2.8bn range) despite the H1 16 profit of €1.4bn.
Ergo restructuring programme
01 Jun 16
Ergo, the primary insurance subsidiary of Munich Re, released some details of the announced restructuring programme. Ergo will invest a total net figure of €1bn up to 2020. It plans to lower its cost basis by around €540m gross (around €280m net) by 2020. The measures will lead to the loss of around 1,800 jobs in Germany. The one-off expenses attributable to 2016, which will have an impact of around €300m on Ergo’s result. Due to the investments attributable to 2016, Ergo’s result for the ongoing financial year should be slightly negative. In the years to follow, savings and additional earnings potential will increasingly offset the investments made. For 2017, Ergo expects its result to return to a distinctly positive level. From 2021 at the latest, Ergo expects its annual net profits to contribute more than €500m to Munich Re’s result on a long-term basis.
Q1 figures are disappointing, peers released better figures
10 May 16
Net profit attributable to shareholders decreased by 45.5% to €430m for Q1 16 compared to Q1 15. Gross premiums written were down by 4% to €12.5bn in Q1 16 compared to the same period last year. At constant exchange rates, the rate of change would have been down by 2%. Expenses for claims declined by 12% to €9.0bn in Q1 16. The technical result rose by 3.6% to €945m for Q1 16 compared to Q1 15. The investment result decreased by 14% to €1.6bn in Q1 16 compared to Q1 15. The annualised RoI was 2.7% for Q1 16 compared to 3.0% for the same period last year. The other non-operating result was a loss of €88m in Q1 16 compared to a profit of €6m in Q1 15. Pre-tax profit declined by 37% to €593m in Q1 16 compared to Q1 15. The tax rate increased from 16% for Q1 15 to 26% for Q1 16. Shareholders’ equity was up by 3% to €31.8bn at the end of March 2016 compared to the end of 2015. The return on equity was therefore 5.6% for Q1 16 compared to 9.7% for Q1 15.
New profit target and share buy-back programme for FY2016 released
16 Mar 16
Munich Re released, together with its annual report for 2015, business targets for 2016 and a new share buy-back programme. The group is aiming for a consolidated result of €2.3bn to €2.8bn for FY2016 assuming no large unexpected claims or severe currency and capital market developments. In reinsurance, the consolidated result for 2016 should be in the range of €1.9bn to €2.4bn. For the ERGO field of business, Munich Re projects a consolidated result for 2016 in the order of €250m to €350m. It expects that for the financial year 2016 its gross premiums written will be €47bn to €49bn. For p&c reinsurance, Munich Re’s target remains a combined ratio of around 98% of net earned premiums. Munich Re anticipates major losses of the order of around €2bn, corresponding to an unchanged 12% of net earned premiums for FY2016. In p&c primary insurance, the combined ratio for 2016 should be approximately 95%. Munich Re expects a total investment result of around €7bn, representing a return on investments of about 3%. Munich Re has announced a further share buy-back programme: before the Annual General Meeting on 26 April 2017, shares with a volume of up to €1bn are to be repurchased. The current share buy-back programme is to be concluded by the time of the Annual General Meeting on 27 April 2016; to date, around 5.2 million shares worth c. €890m have been bought back.
FY2015 results in line but dividend increase announced
04 Feb 16
Munich Re has commented on the 1 January agreement renewals and released some preliminary figures regarding its Q4 15 and FY2015 business. Net profit for Q4 15 was flat at €0.7bn compared to the same period in 2014. Munich Re’s preliminary net profit for FY2015 was €3.1bn compared to €3.15bn for FY2014. Gross premiums written by the group in FY2015 rose by 3% to €50.4bn. The investment result declined by 6% to €7.5bn for FY2015 compared to FY2014. Operating profit under the company definition increased by 20% to €4.8bn for FY2015. Group equity was up by around €0.7bn to €31.0bn at the end of 2015. RoE was 10.0% for FY2015 compared to 11.3% for FY2014. The dividend proposal for FY2015 increased to €8.25 compared to €7.75 per share for FY2014.
VPC Speciality Lending Investments PLC – sticking to your knitting pays dividends
05 Dec 16
A 25% discount on a dividend paying vehicle suggests either (a) lack of belief in the NAV, (b) lack of belief in the dividend, (c) concerns over future delivery, (d) a shareholder’s base not normally exposure to “closed end structures” or (e) some combination of (a) to (d). We had a first meeting with the management team and London representative of VPC Speciality Lending to try to better understand why the share price had fallen quite so much.
N+1 Singer - Grainger - Final results in line, further progress on PRS investment pipeline
01 Dec 16
Grainger has reported FY16 final results this morning with key NNNAV and recurring PBT metrics in line with our forecasts. Sales performance and rental income growth was strong in H2, as previewed in the positive FY trading update driving our 19% PBT upgrade in early October (11/10). The PRS investment pipeline continues to grow now standing at £389m secured and £347m in legals as Grainger pursues an £850m investment target by 2020. A 3.05p final dividend is in line with the revised policy to distribute 50% net rental income. The shares continue to trade on a significant, and unwarranted, 20%+ discount to NNNAV. We reiterate our BUY recommendation.
Better Capital – A tale of two funds
05 Dec 16
Our gut feel on the results is that BCAP’s Gardner disposal feels viable (albeit as a late Q1 transaction). Post Gardner, the exit profile for BCAP’s portfolio is slanted towards the years 2018/19 and not earlier; we view the market’s current pricing as cautious (14% disc to our estimate of FV). In contrast, BC12’s more consumer facing portfolio remains a work in progress and may well offer further disappointment before turning a corner; the market valuation (51% discount to NAV) is cautious but probably fair given the difficulties.
Meeting near-term headwinds
06 Dec 16
In its trading update IFG reported that performance has been in line with management expectations. The cooling effect of market uncertainty on growth in James Hay and financial advice client numbers, together with the impact of low interest rates, remain a near-term head wind for revenues. Even so, with Saunderson House continuing to increase profits, IFG expects to match 2015 earnings. The long-term growth opportunity presented by an ageing population and pension freedoms remains in place and to address this IFG is continuing investment to enhance its service and increase operational gearing.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
05 Dec 16
As we mentioned in our 18 November 2016 note, a continuation vote was expected to be announced before the end of 2016. The announcement last Friday included details of the continuation vote, and in particular, a recommendation by the Directors to replace the June 2015 strategy of selling non-core assets and developing the core projects, with a new strategy of an orderly sale of the Company’s assets, with a target of selling all assets by 31 December 2019 and a distribution policy for returning monies to shareholders following disposals. Alongside these recommendations, there are proposed changes to the remuneration for the investment manager.