A Munich Re board member purchased nearly €200,000 worth of company stock in mid-May, a move that came as the German reinsurer traded close to its lowest price in a year and undertook a significant restructuring of how it absorbs risk.
Munich Re board member Mari-Lizette Malherbe bought 413 shares through the Xetra platform at an average price of €478.89 per share, for a total of roughly €198,000 – the largest reported directors’ dealing on the German equity market last week, according to Ad Hoc News.
Malherbe has served on Munich Re’s Board of Management since Jan. 1, 2023, with responsibility for the Life & Health division. She began her career at Munich Reinsurance Company of Africa in Johannesburg in 2007 and held successive roles in London and Beijing before becoming chief executive of the UK Life Branch.
Munich Re’s stock had fallen roughly 14% over the previous month and was trading near €474 on the day of the transaction – just 1.4% above its 52-week low of €467.30. Market participants often view insider purchases during periods of weakness as a signal that management believes the share price is undervalued.
The share purchase coincided with a broad pullback from external risk-sharing arrangements. Munich Re reduced its retrocession program from $1.55 billion to $600 million, wound down two long-standing sidecar structures – Eden Re and Leo Re – and allowed a catastrophe bond to mature without replacement. With a Solvency II ratio of 292%, well above its internal target of 200%, the company said it could comfortably retain more exposure on its own balance sheet rather than pay third parties to absorb the risk.
The shift comes amid softening market conditions. During the April renewal season, Munich Re declined business that did not meet its minimum return requirements, resulting in an 18.5% reduction in written volume, while premium rates fell 3.1% on a risk-adjusted basis.
First-quarter results remained strong. Net profit reached €1.714 billion, the combined ratio in property-casualty reinsurance improved to 66.8%, and the company maintained its full-year net income target of €6.3 billion.
Looking ahead, Munich Re forecast 12 to 13 named cyclones in the North Atlantic, below historical averages but warned that a potential “Super El Niño” in the western Pacific could intensify typhoon activity and test the group’s decision to retain more risk internally.
Munich Re management is scheduled to present at Deutsche Bank Global Financial Services Conference in New York on May 27–28, with its half-year results due Aug. 7.
