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Munich Re keeps 2026 guidance as July renewals show pricing pressure
The reinsurer reported Q2 2026 net income of €2.211 billion and said July 1 renewals brought more than a 9% negative volume change and a 5.5% risk-adjusted price decline.
Munich Re said it will keep its unchanged annual guidance of €6.3 billion after posting net results of €2.211 billion in Q2 2026 and €3.925 billion in the first half of the year. The company framed the performance around portfolio discipline as the property and casualty reinsurance market softens.
On its July 1 renewals, Munich Re disclosed a negative volume change of more than 9% to €2.1 billion, alongside a risk-adjusted price decline of -5.5%. It attributed the decline to a -4.4% nominal price change and a -1.1% business mix effect.
During an analyst call, CEO Christoph Jurecka said the firm was able to walk away from business where pricing was viewed as inadequate, particularly in Property XL and parts of Casualty XL. He added that Munich Re delivered “no acceleration” in rate softening compared with April renewals, with pricing in XL business moderating by the same amount.
Munich Re also cited selective actions by line, including pulling back in certain Property proportional areas while growing in others, notably Latin America and the US. The company said it managed the portfolio to optimize risk-adjusted returns, including withdrawing from business with inadequate profitability while pursuing new opportunities in proportional and non-proportional coverage.