Metzler Says Munich Re On Track to Meet FY26 Net Profit Target; Buy Retained

Munich Re (MUV2.F) is on track to achieve its full-year 2026 net profit target of 6.3 billion euros, with Metzler Capital Markets projecting a strong quarterly net result from the German reinsurance group in the three months ended June 30. In a Friday earnings preview note, the research firm said it expects the group's second-quarter net result to reach 1.80 billion, up 5% on a quarterly basis. For the first half, Munich Re is forecast to see a 10.5% annual growth in net profit to 3.51 billion euros. "As we stated after Q1, we do not believe that Munich Re will meet the 2026 target for EUR 64 bn insurance revenue (we forecast EUR 61.5 bn, +2% y-o-y; Bloomberg median: EUR 61.4 bn). However, we appreciate that management prefers profitability over business volume. Given our Solvency II ratio forecast of 298% at YE '26e, the currently low top-line growth could result in upside for a potential buyback in 2027," Metzler noted, maintaining the stock's buy rating and 600 euro price target. Munich Re is scheduled to publish its half-year financial report on Aug. 7.