Munich Re Kept at Hold as Berenberg Notes FY26 Revenue Outlook Revision

06:49 AM EDT, 08/10/2026 (MT Newswires) -- Berenberg maintained its investment opinion on Munich Re (MUV2.F), as analysts took note of the German reinsurer's updates to its full-year 2026 guidance alongside the release of its second-quarter results. "While Munich Re has lowered its revenue guidance for FY26, it has maintained its full-year net income target of EUR6.3bn. We believe the former remains ambitious, while the latter can be exceeded, likely due to lower large losses. The future looks increasingly challenging for Property & Casualty Re (P&C Re), given the softening market conditions, with Life & Health Re (L&H Re) and ERGO driving future earnings. While we think that the total yields on offer are attractive, at c9% pa based on our estimates, valuation is broadly in line with the long-run average on a P/E basis. As we see limited scope for the shares to re-rate in the near term, we maintain our Hold rating," according to a Monday note. Munich Re's second-quarter reinsurance revenue fell 2% year over year, which the research firm said was due to renewal outcomes, volume discipline, currency pressures and accounting lags. As a result, management cut its 2026 insurance revenue outlook to 62 billion euros from 64 billion euros. Against this backdrop, analysts affirmed their "more conservative" view, with their 2026 revenue estimate expected to come in 3% below the company's goal. Meanwhile, analysts lifted their 2026 EPS projection by 5% to reflect reduced large-loss impacts and stronger investment income, as their outer-year assumptions remain "broadly unchanged." The stock has a price target of 565 euros at Berenberg.