07:47 AM EST, 11/13/2026 (MT Newswires) -- Berenberg expects Munich Re (MUV2.F) to generate more earnings from investments than from underwriting as pricing softens. "From FY27, we forecast the investment result to overtake the total technical result for the first time under IFRS 17, as softening pricing erodes margins in the Property & Casualty Re (P&C Re) segment, while higher yields lift the investment result. Along with support from the Life & Health Re (L&H Re) segment and ERGO, we forecast net income staying flat at cEUR6.3bn in FY27 (versus the original FY26 target), where we think consensus is too pessimistic," the research firm said in a note published Friday. "Nevertheless, the quality of Munich Re's earnings is falling, and EPS growth relies increasingly on buybacks." Looking forward, analysts expect that the German reinsurance group will likely aim for earnings stability when it unveils its outlook for 2027 on Dec. 10, 2026, forecasting a 2027 and 2028 net income target of 6.3 billion euros and 6.5 billion euros, respectively. In terms of dividends and share buybacks, the research firm expects total payouts to be in the 85% to 95% range annually over the next three years, given Munich Re's "very strong" solvency ratio of 301% as of Sept. 30. "While total yields of c8% pa remain attractive, valuation is broadly in line with the long-run average on a P/E basis. As we see limited scope for the recent outperformance of the shares to continue, we maintain our Hold rating," Berenberg said. The price target was left unchanged at 565 euros.

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