Munich Re is reviewing its P&C reinsurance revenue outlook as softer market conditions press on growth prospects, Germany's Boersen-Zeitung reported. Chief financial officer Andrew Buchanan was cited as the source of the disclosure.
The German reinsurer had flagged in May that achieving its 2026 P&C reinsurance revenue target of €40 billion (US$46.7 billion) had become more challenging.
Buchanan told the newspaper that the factors behind that earlier assessment had not gone away. "As part of our work on the half-year financial statements, we will take a very close look at the business in the pipeline for the third and fourth quarters," he said, according to Boersen-Zeitung. "That will determine the guidance we give to the market."
Munich Re is scheduled to report its first-half results on August 7.
By contrast, Munich Re's life and health reinsurance business was broadly on track in terms of revenue, the newspaper reported.
The split reflects the differing market dynamics each segment faces. Life and health reinsurance has been insulated from the pricing declines that have pressed on P&C volumes throughout 2026.
Munich Re's Q1 2026 results, published in May, showed a net profit of €1.714 billion. The P&C reinsurance combined ratio improved to 66.8%. The group maintained its full-year net income target of €6.3 billion at that point.
At the April 2026 renewals, Munich Re cut written volume by 18.5% to €2.0 billion after declining business that did not meet minimum return thresholds. Risk-adjusted prices fell 3.1% at those renewals, according to the same reporting.
The broader market environment explains why the €40 billion target has come under pressure. Property-catastrophe pricing has fallen by 10% to 15% since January 2026, according to Morningstar DBRS, as global reinsurance capital swelled to US$805 billion.
For Munich Re, softer pricing reduces revenue even as underwriting profitability holds. Its top-line projections have slipped while profit targets remain in place.
Munich Re has responded to the pricing pressure with portfolio discipline. The company exited two sidecar vehicles, declined to renew a catastrophe bond, and reduced its retrocession cover.
The Solvency II ratio stood at 292% at the end of March, well above the internal target corridor of 200%. Munich Re is retaining peak peril exposure on its own balance sheet rather than transferring it.
Munich Re's Ambition 2030 strategy targets a return on equity above 18% through the end of the decade. For 2026, the group is guiding to insurance revenue of €64 billion and a net profit of €6.3 billion.
The P&C revenue reassessment is separate from the profit target. It captures the premium volume impact of softer pricing rather than a change in underwriting profitability.
Jefferies analysts have estimated that only a loss event exceeding $100 billion would reverse the current softening cycle. Munich Re's H1 results are expected to include the updated P&C revenue guidance that Buchanan referenced.
