Munich Re held an investor day and presented a medium-term plan up to 2025. Earnings per share should increase annually by 5 percent. The return on equity should be 12 to 14 percent in 2025. Sustainability is becoming more and more important. In the investment portfolio, the net greenhouse gas emissions are to fall by 25 percent to 29 percent by 2025. Share buybacks are also planned.
Independent Research analysts see the outlook as conservative. They continue to expect earnings per share of EUR 8.57 in 2020. The dividend should be EUR 9.80 (old: EUR 9.60). Earnings per share of EUR 19.72 are forecast for 2021. Then there should be a dividend of 10.30 euros per share for the shareholders. That corresponds to a dividend yield of more than 4 percent.
The analysts continue to give a hold recommendation for Munich Re shares. The price target for the paper was previously at EUR 255.00. In the new study, it sinks to 250.00 euros.
Munich Re shares gain 0.3 percent this morning to EUR 240.70.