MUNICH RE : Q1 conference call: Managing the decline

Research evidence excerpt

MUNICH RE : Q1 conference call: Managing the decline

EQUITIES

INSURANCE

MUNICH RE OUTPERFORMPRICE* EUR499.3  TARGET PRICE EUR600 (UPSIDE 20%)

MUNICH RE ADR OUTPERFORMPRICE* USD11.6  TARGET PRICE USD14 (UPSIDE 20%)

FLASH NOTE

Q1 conference call: Managing the decline

12 MAY 2026 Securities Research Report Production time: 12:37* (London time)

Research Analyst & Publishing Entities

Iain Pearce BNP Paribas London Branch +44 7435 660 628 iain.pearce@uk.bnpparibas.com

What happened?

Munich Re delivered a winding call after a challenging set of numbers. The vast majority of the call was dedicated to

the insurance revenue line, with questions about outlook for the remainder of the year, the realism of the 2026 guidance

and the potential risks to the longer-term guidance. Overall, given the difficult backdrop of the renewals, it was never

likely to be an optimistic call, with management dealing with the challenges presented.

BNPP View:

Insurance revenue outlook for 2026: Munich Re management were unsurprisingly pressed on insurance revenue

deterioration and why the company are maintaining the insurance revenue guidance for the group and the reinsurance

segment. Whilst management accepted that this guidance was now more difficult to achieve, there was still the

possibility that this could be achieved. This potential was based on the prospect for potential large deals in the Life and

Health reinsurance division. In reality, we still expect this guidance to be missed.

P&C insurance revenue outlook for 2030: There were some questions surrounding the P&C reinsurance revenue

outlook for 2030. The company had guided to an insurance revenue growth cagr of 2025 – 2030 of 0-3%. Given the

decline witnessed in 2026, there are realistic questions around this figure.