The FINANCIAL -- Munich Re is paying a significantly increased dividend of €7.25 per share for the financial year 2013 (previous year: €7.00).
The FINANCIAL -- Munich Re is paying a significantly increased dividend of €7.25 per share for the financial year 2013 (previous year: €7.00). This puts Munich Re's overall payout to shareholders at more than €1.25bn. Shareholders approved the relevant proposal at today's Annual General Meeting in Munich. For the current financial year, Munich Re is aiming for a profit of €3bn. Initial estimates indicate a pleasing performance for the first quarter, with the quarterly profit likely to total around €900m, according to Munich Re.
When the dividend is paid out on 2 May 2014, the amount returned to Munich Re's shareholders since 2006, including the share buy-backs carried out since then, will total around €16bn. In a new share buy-back programme, shares with a volume of up to €1bn are to be repurchased before the Annual General Meeting on 23 April 2015. This buy-back programme thus follows on directly from the programme that ran until today's Annual General Meeting, in which around 6.4 million shares with a volume of €1bn were repurchased.
"We have made a good start to the current year, partly because we were hardly affected by major losses. Altogether, the result for the first quarter should be around €900m. In the two rounds of renewals so far this year – most recently at the beginning of April – the effects of the keener competition were clearly apparent. We cannot completely detach ourselves from this trend. But we have also seen that Munich Re is less affected by these cyclical market movements than the market as a whole. Our strategy is proving effective." Munich Re will be publishing detailed figures for the first quarter of 2014 on 8 May 2014.
"This target is definitely ambitious, given the prospect that the return on our investments will fall further and our tax burden will revert to normal. But the target is achievable based on the quality and profitability of our core business. As a risk carrier, we certainly don't need to worry about the world running out of risks: globalised and closely linked economies, complex technologies, demographic changes and natural hazards result in strong demand for insurance cover. These are being constantly joined by new risks, such as reputational risks and cyber risks, for which we have developed and will continue to develop solutions for our clients. Innovations are key – if not the key – to profitable growth. We aim to exploit our Group's innovation capacity even more strongly in the future."