Germany-based insurer Munich Re has unveiled its new multi-year strategy, focusing on profit growth and higher shareholder participation, the company said in a press release on 11 December.
The strategy combines reinsurance and primary insurance, with sustained earnings growth in L&H reinsurance, Global Specialty Insurance, and ERGO helping to offset potential fluctuations in P&C reinsurance.
The so-called multi-year Ambition 2030 rests on three pillars: Outpeak, Outpace, Outperform.
- Outpeak: Strengthen core underwriting and investment, raising L&H reinsurance, Global Specialty Insurance, and ERGO contributions from 50% to 60% by 2030.
- Outpace: Streamline the organisation to improve speed, efficiency, and agility, targeting annual cost savings of 600m ($700m) by 2030.
- Outperform: Expand market leadership with a return on equity (RoE) above 18%, benefiting shareholders, clients, employees, and society.
The company aims for RoE above 18% by 2030, with earnings per share growing by more than 8% annually on average, a total payout ratio above 80% per year, and a solvency ratio exceeding 200%.
Munich Re also highlighted its non-financial ambitions, including climate targets aiming for net zero in its investment portfolio and (re)insurance business, alongside expanded diversity, equity, and inclusion (DEI) goals.