Munich Re's Shareholder Meeting to Decide on Auditor Switch and Record Payout

Munich Re's AGM features a pivotal vote to replace auditor EY after Wirecard scandal and approve a 24 euro/share dividend. The reinsurer is shifting strategy under 'Ambition 2030'.

Munich Re shareholders face a consequential vote at their annual meeting on April 29. The agenda is dominated by two major items: the approval of a record dividend and a pivotal decision to replace the company's auditor, a move directly linked to the Wirecard scandal.

The proposed switch from EY to KPMG is far from routine. EY, which audited Wirecard's books until 2019, was sanctioned by the German audit oversight body APAS in 2023 for proven negligence, receiving penalties that included a temporary ban on taking on new clients. On the recommendation of its audit committee, Munich Re’s supervisory board is now proposing KPMG as the new auditor for the financial year 2026, a role that will also encompass sustainability reporting under the European CSRD directive. While the committee prefers KPMG, shareholders will be given a choice between firms, setting the stage for a direct contest.

Alongside the auditor vote, investors are set to approve a dividend of 24 euros per share, an increase of roughly one-fifth from the previous year. A new share buyback program of up to 2.25 billion euros is also scheduled to commence on the same day.

These decisions come as the reinsurer executes a significant strategic overhaul. Central to this shift is a move away from volatile natural catastrophe business toward more stable, higher-margin specialty lines. This strategy, part of the "Ambition 2030" program, aims to increase the share of less cyclical business from about 50% to roughly 60% of total revenue by the end of the decade.

The company has already taken concrete steps. At the January 1 renewal, Munich Re deliberately reduced its premium volume by 7.8% to 13.7 billion euros by letting unprofitable contracts expire. Supporting this pivot, Andreas Moser assumed the role of Global Head of Credit, Surety and Political Risk Reinsurance on April 1. A company veteran since 2004 and a co-founder of the insurtech accelerator Mundi Lab, Moser is tasked with expanding capacity in these lucrative niches.

The ongoing April renewal season provides an early test for this new portfolio profile. Management anticipates stable pricing; confirmation of this trend could see the reinsurance segment's contribution to group profit rise to between 5.2 and 5.4 billion euros. This would be a key component in achieving the full-year target of 6.3 billion euros in net income, which would set a new group record.

Munich Re's financial ambitions are clearly quantified. By 2030, it targets a return on equity of over 18%, average annual earnings-per-share growth exceeding 8%, and a total payout ratio above 80%. These goals build on a record result of 6.1 billion euros for 2025, the fifth consecutive year the group has surpassed its own profit forecast. For 2026, the aim is 6.3 billion euros in net profit alongside insurance revenue of 64 billion euros.

An accompanying efficiency program is expected to deliver annual savings of 600 million euros by 2030, up from 200 million this year, aided by increased use of artificial intelligence.

The first concrete data on the strategy's effectiveness will arrive with the publication of first-quarter results on May 12. These figures will reveal whether the disciplined underwriting approach is successfully supporting margins and steering the return on equity toward the coveted 18% mark.