Metzler Adjusts Munich Re Estimates Amid Expectations of Persistent Pricing Pressure in FY27

MT Newswires · 1d ago
07:15 AM EDT, 08/10/2026 (MT Newswires) -- Metzler Capital Markets made "small" adjustments to its estimates for Munich Re (MUV2.F), expecting the German reinsurance group to withstand some pricing pressure after the "somewhat disappointing" July reinsurance renewals. "On the positive side, Munich Re said that terms and conditions remained broadly unchanged in the renewals. In our view, this is an indicator that the reinsurance market is weakening, but not really weak in terms of prices. Moreover, management expects that favorable price levels can be largely upheld despite a high level of competition in the coming renewals," analysts wrote in a Monday note. "We uphold our view that non-life reinsurance prices will probably continue to fall in 2027e, but at a much slower pace than in 2026e." Taking this and the company's half-year results into account, the research firm edged down its 2026 insurance revenue estimates for 2026 through 2028. Meanwhile, the EPS projections were raised by 1.3% for 2026, trimmed by 2.7% for 2027, and left unchanged for 2028. The buy rating on the stock was retained, along with the price target of 600 euros.