{
}
European reinsurers have seen a significant improvement in return on equity (ROE), surpassing the cost of equity in three of the last four years, driven by strong returns in 2023 and 2024. This trend follows a series of large loss events and rising natural catastrophe losses, prompting rate increases since 2017, particularly after Hurricane Ian in 2022. Despite challenges, including Scor's pressure on ROE due to reserving actions, the sector is proactively managing risks and building reserve resiliency.
American Express and CLEAR have renewed their partnership to enhance premium travel experiences for card members at airports. This collaboration aims to provide exclusive benefits and streamline travel for American Express customers.
Insured losses from the Los Angeles wildfires are estimated between $35-$50 billion, potentially influencing property catastrophe pricing for mid-year reinsurance renewals. Despite this, analysts expect rates to remain consistent with January 2025 trends, as major reinsurers have already absorbed significant portions of their natural catastrophe budgets. The overall reinsurance market is in a post-peak margin cycle, with a slight decline in risk-adjusted pricing observed, though further catastrophe events could alter this outlook.
European stock markets are currently outperforming, particularly in the insurance sector, with Allianz, Munich Re, and Prudential showing positive trends. Prudential stands out with significant fundamental potential, being undervalued compared to its peers, while Allianz and Munich Re have reached their price targets. Seasonal performance favors Prudential, which has historically gained 5.4% during this period, compared to Allianz's 4.5% and Munich Re's 2.7%.
Goldman Sachs has initiated coverage on Hannover Re with a Buy rating and a price target of EUR312. The firm believes Hannover Re will outperform its peers in property and casualty reinsurance due to its conservative reserving approach and effective earnings management. The analyst sees a reduced valuation premium compared to industry leaders, presenting a favorable entry point for investors.
UBS has maintained a "Neutral" rating for Munich Re, setting a target price of 594 euros. Analyst Will Hardcastle highlighted the appeal of the complete acquisition of US start-up Next Insurance for ERGO, noting the company's substantial surplus capital of around 10 billion euros, which could enhance earnings per share by 10 to 15 percent.
Next Insurance has been acquired by Munich Re for $2.6 billion. This significant deal highlights the growing interest in insurtech companies and their potential to reshape the insurance landscape. The acquisition marks a notable milestone in the industry.
UBS has maintained a "Neutral" rating for Munich Re, setting a target price of 555 euros. Analyst Will Hardcastle noted that negative price trends in January renewals and severe wildfires in California could impact future consensus estimates and deplete first-quarter catastrophe budgets. Swiss Re remains the analyst's preferred choice in the industry.
Natural disasters in 2024 resulted in global economic losses of $320 billion, with $140 billion insured, marking the fifth most expensive year since 1980. Hurricane Helene was the most damaging event, causing $56 billion in losses. Climate change is increasingly linked to the frequency and severity of such disasters, highlighting the urgent need for global resilience efforts.
Natural disasters in 2024 resulted in global economic losses of $320 billion, with $140 billion insured, marking the third-costliest year for insured losses since 1980. Hurricane Helene caused the most damage at $56 billion, while climate change continues to exacerbate the frequency and intensity of such events. Approximately 11,000 lives were lost, significantly fewer than in previous years, highlighting the urgent need for enhanced resilience in vulnerable regions.
MUNICH RE
Companies
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
European reinsurers see return on equity growth amid market challenges
10:04 28.03.2025
clear and american express extend partnership for premium airport travel experiences
21:32 25.03.2025
los angeles wildfires impact property catastrophe pricing ahead of mid-year renewals
11:31 25.03.2025
European insurance stocks show potential with Allianz Munich Re and Prudential
13:47 24.03.2025
Goldman Sachs initiates buy rating for Hannover Re with EUR312 target
08:19 24.03.2025
ubs maintains neutral rating for munich re with target price of 594 euros
12:18 21.03.2025
Munich Re acquires Next Insurance for 2.6 billion dollars
22:15 20.03.2025
ubs maintains neutral rating on munich re amid market challenges
09:09 29.01.2025
climate change drives record losses from natural disasters in 2024
Brazilian Real
Japanese Yen
United States Dollar
MUNICH RE
USA
JPN
BRA
DEU
Tobias Grimminger
Thomas Blunck
Show more
10:47 09.01.2025
climate change drives record economic losses from natural disasters in 2024
10:47 09.01.2025
Trending
Subcategory
Corporate News
Stock Market Updates
Industry Trends
Banking Regulations
Finance Mergers & Acquisitions
Global Financial Events
Retail and Consumer Goods
CEO Changes
Industry Mergers & Acquisitions
Central Bank Actions
Global Trade Developments
Market Analysis and Predictions
Financial Scams and Security
GDP Growth & Recession Forecasts
Workplace Trends
Inflation and Monetary Impact
Government Policies
Government Economic Policies
Startups & Entrepreneurship
Supply Chain Management
Countries:
Companies:
The Goldman Sachs Group, Inc.
JPMorgan Chase & Co.
Tesla, Inc.
Barclays PLC
Apple Inc.
Deutsche Bank Money Market PP
Bank of America Corporation
Wells Fargo & Company
Citigroup Inc.
Banco Santander, S.A.
Credit Suisse Lux Digital Healt
Morgan Stanley
BNP Paribas SA
Lloyds Banking Group plc
UniCredit S.p.A.
Huawei Technologies CO. Ltd.
Commerzbank AG
UBS Group AG
Microsoft Corporation
Amazon.com, Inc.
Currencies:
United States Dollar
Euro
Chinese Yuan
British Pound Sterling
Swiss Franc
Japanese Yen
Indian Rupee
Australian Dollar
Russian Ruble
Canadian Dollar
Danish Krone
Offshore Chinese Yuan
United Arab Emirates Dirham
Indonesian Rupiah
Saudi Riyal
South Korean Won
Turkish Lira
Hong Kong Dollar
Mexican Peso
Malaysian Ringgit
People: