LSE:0KFE

Stock Analysis Report

Münchener Rückversicherungs-Gesellschaft

Executive Summary

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft engages in the insurance and reinsurance businesses worldwide.

Rewards

Trading at 44.1% below its fair value

Earnings are forecast to grow 1.9% per year

Pays a high and reliable dividend of 3.62%

Risk Analysis

No risks detected for 0KFE from our risk checks.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Münchener Rückversicherungs-Gesellschaft's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0KFE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.7%

0KFE

-5.5%

GB Insurance

-4.4%

GB Market


1 Year Return

23.4%

0KFE

-6.7%

GB Insurance

1.4%

GB Market

Return vs Industry: 0KFE exceeded the UK Insurance industry which returned -6.7% over the past year.

Return vs Market: 0KFE exceeded the UK Market which returned 1.4% over the past year.


Shareholder returns

0KFEIndustryMarket
7 Day-8.7%-5.5%-4.4%
30 Day-5.7%-3.2%-6.3%
90 Day-0.6%0.5%-2.7%
1 Year28.8%23.4%3.7%-6.7%6.7%1.4%
3 Year64.8%44.1%12.5%-7.6%12.6%-1.5%
5 Year74.3%39.4%24.3%-7.6%28.8%-0.7%

Price Volatility Vs. Market

How volatile is Münchener Rückversicherungs-Gesellschaft's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Münchener Rückversicherungs-Gesellschaft undervalued compared to its fair value and its price relative to the market?

44.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0KFE (€257.1) is trading below our estimate of fair value (€459.61)

Significantly Below Fair Value: 0KFE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0KFE is good value based on its PE Ratio (13.4x) compared to the Insurance industry average (14x).

PE vs Market: 0KFE is good value based on its PE Ratio (13.4x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: 0KFE is poor value based on its PEG Ratio (7x)


Price to Book Ratio

PB vs Industry: 0KFE is good value based on its PB Ratio (1.2x) compared to the GB Insurance industry average (1.8x).


Next Steps

Future Growth

How is Münchener Rückversicherungs-Gesellschaft forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0KFE's forecast earnings growth (1.9% per year) is above the savings rate (0.5%).

Earnings vs Market: 0KFE's earnings (1.9% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: 0KFE's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0KFE's revenue (2.3% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: 0KFE's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0KFE's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Münchener Rückversicherungs-Gesellschaft performed over the past 5 years?

-14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0KFE has high quality earnings.

Growing Profit Margin: 0KFE's current net profit margins (4.9%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: 0KFE's earnings have declined by -14.4% per year over the past 5 years.

Accelerating Growth: 0KFE's earnings growth over the past year (7%) exceeds its 5-year average (-14.4% per year).

Earnings vs Industry: 0KFE earnings growth over the past year (7%) underperformed the Insurance industry 23.4%.


Return on Equity

High ROE: 0KFE's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Münchener Rückversicherungs-Gesellschaft's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0KFE has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0KFE's debt is covered by short term assets (assets are 7.6x debt).


Financial Institutions Analysis

Asset Level: 0KFE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0KFE has a sufficient allowance for bad loans.

Low Risk Liabilities: 0KFE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0KFE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0KFE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0KFE has an appropriate level of bad loans.


Next Steps

Dividend

What is Münchener Rückversicherungs-Gesellschaft's current dividend yield, its reliability and sustainability?

3.62%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.9%markettop25%5.3%industryaverage5.1%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: 0KFE's dividend (3.62%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: 0KFE's dividend (3.62%) is low compared to the top 25% of dividend payers in the UK market (5.34%).


Stability and Growth of Payments

Stable Dividend: 0KFE's dividends per share have been stable in the past 10 years.

Growing Dividend: 0KFE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.5%), 0KFE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0KFE's dividends in 3 years are forecast to be well covered by earnings (49.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Joachim Wenning (54yo)

2.8yrs

Tenure

€5,625,649

Compensation

Dr. Joachim Wenning joined Münchener Rückversicherungs-Gesellschaft AG (“Munich Re”) in 1991, where he worked until early 1997 as a treaty specialist with technical responsibility for life reinsurance clie ...


CEO Compensation Analysis

Compensation vs Market: Joachim's total compensation ($USD6.11M) is about average for companies of similar size in the UK market ($USD4.70M).

Compensation vs Earnings: Joachim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joachim Wenning
Chairman of the Management Board2.8yrs€5.63m0.0080% 3.0m
Torsten Jeworrek
Member of the Board of Management & CEO of Reinsurance Business16.3yrs€3.97m0.0096% 3.6m
Thomas Blunck
Member of the Board of Management14.3yrs€2.72m0.0036% 1.3m
Hermann Pohlchristoph
Member of the Board of Management2.8yrs€2.59m0.00016% 59.4k
Peter Röder
Head of GC/NA Division & Member of the Board of Management12.3yrs€2.72m0.0050% 1.9m
Doris Höpke
Head of Human Resources5.8yrs€2.73m0.0024% 872.7k
Markus Rieß
Member of the Board of Management4.4yrs€4.02m0.0017% 620.2k
Christoph Jurecka
CFO & Member Management Board1.1yrsno datano data
Nicholas Gartside
Chief Investment Officer & Member of Management Board0.9yrsno datano data
Soobum Lee
Head of the Operation0yrsno datano data

4.4yrs

Average Tenure

53yo

Average Age

Experienced Management: 0KFE's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hans-Jürgen Schinzler
Honorary Chairman of the Supervisory Board7.1yrsno datano data
Ann-Kristin Achleitner
Supervisory Board Member7.1yrs€182.00kno data
Frank Fassin
Supervisory Board Member10.8yrs€96.00kno data
Clement Booth
Supervisory Board Member3.8yrs€96.00kno data
Nikolaus von Bomhard
Chairman of the Supervisory Board0.8yrs€2.54mno data
Maximilian Zimmerer
Supervisory Board Member2.6yrs€96.00kno data
Gerd Häusler
Supervisory Board Member5.8yrs€110.50kno data
Benita María Ferrero-Waldner
Supervisory Board Member10yrs€96.00kno data
Ursula Gather
Supervisory Board Member5.8yrs€96.00kno data
Anne Horstmann
Deputy Chairman of Supervisory Board0.8yrs€150.00kno data

5.8yrs

Average Tenure

64yo

Average Age

Experienced Board: 0KFE's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft
  • Ticker: 0KFE
  • Exchange: LSE
  • Founded: 1880
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: €37.136b
  • Shares outstanding: 141.09m
  • Website: https://www.munichre.com

Number of Employees


Location

  • Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft
  • Königinstrasse 107
  • Munich
  • Bavaria
  • 80802
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MURG.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1992
MUV2DB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1992
0KFELSE (London Stock Exchange)YesRegistered SharesGBEURJan 1992
MUV2BIT (Borsa Italiana)YesRegistered SharesITEURJan 1992
MUV2XTRA (XETRA Trading Platform)YesRegistered SharesDEEURJan 1992
MUV2DBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURJan 1992
MUVWBAG (Wiener Boerse AG)YesRegistered SharesATEURJan 1992
MUV2 NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJan 1992
MUV2SWX (SIX Swiss Exchange)YesRegistered SharesCHEURJan 1992
MUV2SWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJan 1992
MEURVENXTBR (Euronext Brussels)YesRegistered SharesBEEURJan 1992
MUNICHREBUSE (Budapest Stock Exchange)YesRegistered SharesHUHUFJan 1992
MURG.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.10 ORDUSUSDOct 2008
MUVBDB (Deutsche Boerse AG)UNSP ADR EACH REPR 0.10 ORDDEEUROct 2008

Biography

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft engages in the insurance and reinsurance businesses worldwide. It operates through five segments: Life and Health Reinsurance; Property-Casualty Reinsurance; ERGO Life and Health Germany; ERGO Property-Casualty Germany; and ERGO International. The company offers non-life reinsurance products for capital markets, cyber risks, financial lines and risks, natural catastrophes, natural hazards assessment network risks, aviation, space, capital partners, and agriculture and weather risk transfer. It also provides life reinsurance products related to automated underwriting, capital management, product development, retakaful, and risk management; and health reinsurance products, such as health-strategy, and medical underwriting and business analytics solutions, as well as risk insurance solutions for industrial firms and corporate clients. In addition, the company offers primary insurance products, including direct, life, property-casualty, health, legal expense, and travel insurance products under the ERGO Direkt, ERGO, DKV, D.A.S., and ERV brand names, as well as provides investment fund management services to private and institutional investors. It offers its insurance products to private, commercial, and industrial customers through various sales channels. Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft was founded in 1880 and is based in Munich, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:05
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.