Munich Re exhibits remarkable stability, as documented in recent reports.
The reinsurance sector has demonstrated remarkable resilience as we reach the midpoint of 2025, according to AM Best, a leading rating agency. The industry's return on equity is expected to be in the low to mid-teens for this year, the agency predicts.
Despite the uncertainties surrounding the current hurricane season, the reinsurance industry finds itself in a comfortable position. AM Best and reinsurance broker Guy Carpenter estimate that global reinsurance capital could reach a record high of $649 billion in 2025, surpassing the previous peak of $607 billion set in 2024.
One of the key players in this thriving industry is Munich Re, which has proven its ability to deliver even in challenging times. The company's strict underwriting discipline, strong balance sheet, and clever capital allocation have been instrumental in its success. Munich Re's stock remains the top pick among reinsurers.
The property reinsurance market presents a solid picture at the midway point of 2025. Companies in the sector, including Munich Re, Swiss Re, Berkshire Hathaway, and Hannover Re, have maintained their discipline on attachment points and contract details, despite prices beginning to fall.
The absence of a flood of new entrants competing for market share allows established players like Munich Re to maintain their positions. This robust industry environment further supports Munich Re's business model.
It is worth noting that Boersenmedien AG, the parent company of this news outlet, holds shares of Munich Re in its real portfolio. Additionally, Munich Re's management and a majority shareholder, Mr. Bernd Foertsch, have direct and indirect positions in Munich Re's financial instruments.
AM Best expects the reinsurance industry to find robust conditions for the rest of 2025. With global reinsurance capital at an all-time high and key players like Munich Re performing strongly, the sector appears to be in good health.
Read also:
- Deepwater Port Construction Permits for Projects within the South Central Region's Air Regulations
- Citizen Thekla Walker, Minister, urges: "Let's face our responsibilities at home"
- Editorial Correspondence: Justifying the Elimination of a Program Earmarked for Reducing Our Own Carbon Footprint?
- Investment of $20 million in an eco-friendly ammonia production facility in Africa by SA-H2 fund
