Muenchener Rueckversicherung : Munich Re posts a quarterly result of approx. ?600m -- Share buy-back will not be implemented
July 20, 2020 at 09:30 am EDT
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DGAP-Ad-hoc: Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München / Key word(s): Quarter Results/Share Buyback
Munich Re posts a quarterly result of approx. ?600m -- Share buy-back will not be implemented
20-Jul-2020 / 15:28 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
In the second quarter of 2020, Munich Re registered COVID-19-related losses totalling about ?700m in reinsurance. The largest share of these losses is attributable to cover for major events, with a lower impact reported in life and health business as well as other lines of property-casualty insurance, including business interruption.
Munich Re nevertheless posted a satisfactory net result of approx. ?600m in the second quarter (consensus: ?405m)*. This is due to lower-than-average major losses (excluding COVID-19) and good performance at ERGO. Munich Re will provide final Q2 results on 6 August, as scheduled.
On 26 February 2020, Munich Re announced that it would repurchase shares with a maximum total value of ?1bn between the Annual General Meeting 2020 and the AGM 2021. Against the backdrop of COVID-19 developments, Munich Re announced on 31 March 2020 that it would discontinue implementation of the 2020/2021 share buy-back programme until further notice and until there was greater clarity both on the actual burdens arising from COVID-19 and on capital requirements for potential organic or inorganic business opportunities.
At this time, Munich Re perceives considerable ongoing uncertainty with respect to the macroeconomic development and the financial impact of COVID-19, and does not expect that uncertainty will subside between now and early 2021. In addition, Munich Re has recently identified truly favourable conditions for growing its reinsurance business and therefore the active use of its capital. For these reasons, Munich Re will definitely not implement its discontinued 2020/2021 share buy-back programme.
Based on its very good capitalisation, Munich Re continues to stand for active capital management. In early May of this year, Munich Re paid an increased dividend of ?9.80 per share for the 2019 financial year - and will continue to pursue a shareholder-friendly dividend policy going forward. Munich Re will decide early next year as to a potential, new share buy-back programme for the time between the AGM 2021 and the AGM 2022.
* Average value of estimates from 20 financial analysts
Contact:
Dr. Christoph Klahold
General Counsel & Group Chief Compliance Officer
20-Jul-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Language:
English
Company:
Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München
Königinstraße 107
80802 München
Germany
Phone:
+49(0) 89 3891-0
Fax:
+49(0) 89 399 056
E-mail:
shareholder@munichre.com
Internet:
www.munichre.com
ISIN:
DE0008430026, DE0008430026
WKN:
843002, 843002
Indices:
DAX, EURO STOXX 50
Listed:
Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange; Mailand
Münchener Rückversicherungs-Gesellschaft (Munich Re) is one of the world leaders in reinsurance. Gross written premiums break down by activity as follows:
- reinsurance (70.4%): non-life reinsurance (77.2% of gross written premiums) and life and health reinsurance (22.8%);
- insurance (29.6%): life and health insurance (50% of gross premiums issued) and non-life insurance (21.2%). The remaining gross written premiums (28,8%) are from international insurance activities.
Revenues are distributed geographically as follows: Germany (30.3%), Europe (26.2%), North America (28.8%), Asia and Australasia (9.8%), Africa and the Middle East (2.7%) and Latin America (2.2%).
MUNICH RE 
