Munich Re’s AI-Driven Job Cuts and Auditor Shake-Up Overshadow a Record Payout

Munich Re's AGM approves a €24 dividend and KPMG as new auditor amid ERGO's 1,000 job cuts, climate protests, and a stock near its 52-week low.

The 139th annual general meeting of Munich Re on April 29 was meant to be a celebration of yet another dividend increase — the 25th consecutive year without a cut. Instead, it became a stage for structural upheaval, climate protests, and a stock that keeps sliding.

Shareholders approved a €24.00 per share dividend, a 20% jump from last year, payable on May 5. But the payout failed to lift sentiment. The stock closed the week at €513.20, down more than 3% on the day of the ex-dividend and roughly 15% below its 52-week high of €605. The 52-week low of €507.60 is now just a single percentage point away.

A New Auditor and a Board Exit

The AGM delivered more than a routine dividend vote. KPMG will replace EY as Munich Re’s auditor starting with the 2026 financial year — a direct consequence of the Wirecard scandal. Germany’s audit watchdog APAS fined EY in 2023 and temporarily barred it from taking on new mandates at public-interest companies. KPMG will also handle the sustainability reporting audit, a role that gains significance as the EU’s Corporate Sustainability Reporting Directive takes effect.

On the supervisory board, former CEO Joachim Wenning stepped in after the departure of Clement B. Booth, whose mandate ended with the AGM. Wenning’s appointment came after the statutory cooling-off period expired.

ERGO’s Digital Overhaul Cuts 1,000 Jobs

While the boardroom changes made headlines, the real transformation is happening at the subsidiary level. Munich Re’s insurance arm ERGO is slashing around 1,000 jobs by 2030 — primarily in call centres, claims processing, and standardised clerical roles that artificial intelligence will increasingly handle. Another 700 employees will be retrained for new positions. The group has ruled out compulsory redundancies until 2030.

The restructuring is part of the broader “Ambition 2030” strategy, which targets annual cost savings of €600 million. By 2026, €200 million of those savings are expected to be realised.

Climate Critics Take Aim

The AGM also drew fire from the environmental group Urgewald, which accused Munich Re of contradicting its own climate goals by continuing to insure new US liquefied natural gas terminals. The group pointed to the insurer’s own estimate that global natural catastrophe losses hit $320 billion in 2024 — yet the company still underwrites fossil-fuel infrastructure. Munich Re has pledged to fully exit coal insurance only by 2040 and has set no binding end date for oil and gas coverage.

Q1 Earnings as the Next Test

The dividend payout on May 5 will provide a short-term catalyst, but the real test comes on May 12, when Munich Re reports first-quarter results. The group is targeting a net profit of €6.3 billion for 2026, up from the record €6.12 billion posted in 2025 — the fifth consecutive year it beat its own guidance. Return on equity is expected to exceed 18%.

But headwinds are building. Currency volatility and softening pricing pressure in property and casualty reinsurance are squeezing margins. Fewer natural catastrophes mean fewer claims, but also lower willingness among clients to pay high premiums. A strong opening quarter is essential if the record profit target is to remain credible.

For now, the stock is trading near its floor, caught between a generous payout and a trio of structural challenges: an auditor transition rooted in scandal, an AI-driven workforce overhaul, and a climate strategy that satisfies neither activists nor the balance sheet.