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Munchener Ruckversicherungs-Gesellschaft AG MUV2

Morningstar Rating
€445.60 −4.60 (1.02%)
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Company Report

For European Insurance Dividends, Stick to Good-Quality Companies

For some, if not many investors, dividends are important. This is no less the case in European insurance. However, while investing for dividends can seem straightforward, we think there is more to it than just hunting for stocks that provide the highest yield. Within our European insurance list of 18 companies, we recommend Admiral, Allianz, Munich, and Zurich as the best options for investors looking for a solid, stable, reliable, and real yield. In establishing this list, we rule out companies that have had a track record of omitting dividends and those that have frequently made dividend cuts that we think are meaningful.

Price vs Fair Value

MUV2 is trading at a 758% premium.
Price
€450.20
Fair Value
€154.50
Uncertainty
Medium
1-Star Price
€992.56
5-Star Price
€514.86
Economic Moat
Bql
Capital Allocation
Xysgnpwt

Bulls Say, Bears Say

Bulls

Munich has a unique global specialty insurance division that has foundations in combining industrial machinery inspection services with insurance. This has created unique underwriting benefits.

Bears

Despite the successful turnaround of Munich’s primary insurance division, Ergo, this is quite a capital-intensive division because of its market risk. That has pulled down Munich’s overall returns.

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News

Trading Information

Previous Close Price
€450.20
Day Range
€444.30450.90
52-Week Range
€324.70473.60
Bid/Ask
€445.00 / €445.20
Market Cap
€59.98 Bil
Volume/Avg
205,057 / 273,419

Key Statistics

Price/Earnings (Normalized)
11.26
Price/Sales
0.99
Dividend Yield (Trailing)
3.33%
Dividend Yield (Forward)
3.33%
Total Yield
5.05%

Company Profile

Munich Re was founded in 1880 by Carl von Thieme amid a flurry of other reinsurance companies set up independent of primaries. Then, most reinsurers typically focused on a few customers with strong reputations. Thieme focused on a broader set of cedents in order to drive stronger growth in premiums. This coincided with a strategy of risk diversification and a preference to partner rather than take on a one-sided transfer of risk. In the 1890s, Munich introduced the first machinery insurance. After von Thieme and Wilhelm von Finck founded Allianz, this was the main channel to sell insurance on machinery. We think the approach of partnering with insurers and preferring to avoid one-sided risk, in conjunction with combining inspection and insurance services, remains at the heart of the firm.
Sector
Financial Services
Industry
Insurance - Reinsurance
Stock Style Box
Large Core
Total Number of Employees
42,812

Competitors

Valuation

Metric
MUV2
HNR1
SREN
Price/Earnings (Normalized)
11.2616.6611.42
Price/Book Value
1.952.602.31
Price/Sales
0.991.550.74
Price/Cash Flow
7.8820.5314.95
Price/Earnings
MUV2
HNR1
SREN

Financial Strength

Metric
MUV2
HNR1
SREN
Quick Ratio
Current Ratio
Interest Coverage
23.6113.618.98
Quick Ratio
No chart available

Profitability

Metric
MUV2
HNR1
SREN
Return on Assets (Normalized)
2.04%2.87%1.83%
Return on Equity (Normalized)
19.06%19.06%23.32%
Return on Invested Capital (Normalized)
17.01%16.95%10.47%
Return on Assets
MUV2
HNR1
SREN
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Insurance - Reinsurance Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Munchener Ruckversicherungs-Gesellschaft AG
MURGF
Tkdn$65.4 Bil
Munchener Ruckversicherungs-Gesellschaft AG ADR
MURGY
HxkvpyvykCth$65.4 Bil
Swiss Re AG
SSREF
Bdwj$34.7 Bil
Swiss Re AG ADR
SSREY
SvfhjssmmYkpd$34.7 Bil
Hannover Rueck SE
HVRRF
PkndmwjtmBfw$30.5 Bil
Hannover Rueck SE ADR
HVRRY
BhqxhwklyGlr$30.5 Bil
Everest Group Ltd
EG
Ydhq$15.9 Bil
Reinsurance Group of America Inc
RGA
Myjb$13.5 Bil
RenaissanceRe Holdings Ltd
RNR
HzyfkcdbjQqg$11.2 Bil
SCOR SE ADR
SCRYY
JkfzgcysBhqqv$4.8 Bil

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