Insurance giants Munich Re and Co express appetite for expanded global operations

In the dynamic world of liability insurance, major European players are navigating changes with resilience. AM Best, a leading rating agency, has expressed concerns about the strengthening of reserves in the U.S. market, but analysts at the firm have yet to see any concrete signs of waning discipline.

The reinsurance industry, known for its cautious approach, is currently undergoing a phase of portfolio realignment. Companies are raising attachment points, shifting away from aggregated covers, and expanding into specialty segments such as cyber, shipping, and engineering to diversify their earnings.

This strategic shift is reflected in the financial performance of key players. In 2024, the average combined ratio stood at 86.4%, with Munich Re reporting a lower ratio of 82.4% and Swiss Re at 89.9%. Munich Re led the pack with a return on equity that was in line with industry averages but still impressive at 21.2%.

Munich Re's CEO, Joachim Wenning, sees this as a normalization after years without major losses, rather than a weak market. Similarly, Hannover Re's board member, Sven Althoff, has noted an increasing risk appetite for natural catastrophes.

The four major European reinsurers - Swiss Re, Munich Re, Hannover Re, and SCOR - are showing an appetite for property catastrophe risks. While prices have eased at renewals, discipline in terms of conditions and structures remains intact. Swiss Re, for instance, has increased its P&C reinsurance contract premiums by 3% since the beginning of the year.

Disciplined underwriting, adequate prices, and capital gains ensured profit targets were met for the reinsurers in 2025. This strong performance has kept Munich Re at the top of the sector, remaining the favourite among reinsurers.

Analysts currently consider Helvetia the leading candidate in the insurance sector due to its strong half-year results and the planned fusion with Baloise, which would create the second-largest insurance group in Switzerland with around a 20% market share.

Investors should keep Munich Re stock on their radar due to its strong market position, high profitability, and attractive growth opportunities. With its solid results in 2025 and ambitious growth plans, the company continues to set the pace in the European reinsurance market.

However, it's important to note a conflict of interest disclosure: The publisher Boersenmedien AG's management and majority shareholder, Mr. Bernd Foertsch, has direct and indirect positions in Munich Re.

Meanwhile, Swiss Re has demonstrated growth ambitions despite its withdrawal from the liability segment. The company is looking to capitalise on opportunities in the specialty segments and expects attractive growth opportunities for January 2026. Munich Re, too, reduced parts of its portfolio at renewals but remains optimistic about future growth prospects.

In conclusion, the European reinsurance market is showing signs of strategic evolution, with companies adapting to market changes and maintaining discipline in their underwriting. As these players expand into new segments and continue to deliver strong financial performance, they are poised to shape the future of the industry.

Insurance giants Munich Re and Co express appetite for expanded global operations