Münchener Rück Stock: Shares Surge on Bold 2025 Profit Target

Global reinsurance leader Münchener Rück witnessed a remarkable 5.7% surge in its stock price, reaching €517.80, following the announcement of ambitious profit targets for 2025. The company unveiled plans to achieve a net profit of €6 billion in 2025, marking a significant increase from its 2024 target of €5 billion. This aggressive growth projection, which exceeds analyst expectations of €5.9 billion, represents a substantial 30% rise from previous levels. The comprehensive growth strategy is supported by strong performance across all business segments, with the reinsurance division expected to contribute €5.1 billion to the overall profit.

Financial Metrics Enhancement

The company's optimistic outlook is further reinforced by projected improvements in key financial metrics. Münchener Rück anticipates its investment return to exceed 3.0% in the coming fiscal year, up from the current expectation of 2.8%. The property and casualty insurance segment is projected to maintain a stable combined ratio of 83%, while the primary insurance subsidiary aims to boost its profit to €0.9 billion. Additionally, the group's insurance revenue is forecasted to reach €64 billion, underlining the company's dominant position in the global reinsurance market.