Munich Re Can Deliver on Net Profit for Now, but it Will Get Tougher

Dow Jones08-07

1223 GMT - Munich Re's results show the German reinsurance company can deliver on near-term net profit expectations, but the task seems to be getting tougher, J.P. Morgan analysts say in a note. The company walked away from its reinsurance revenue target for 2026, which doesn't seem surprising, the analysts say. It lowered the target to 38 billion euros from 40 billion euros, while JPM's estimate sits at 37.3 billion euros. Property-and-casualty reinsurance revenue declined 10% in the second quarter, which is likely worse than market expectations, the analysts say. Revenue expectations have come down since Munich Re reported first-quarter results, but the guidance cut should lead to declines to future earnings consensus estimates, they add. Shares fall 1.6%.

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