Münchener Rück – also known as Munich Re Group – is one of Germany’s biggest reinsurers. In fact, Münchener Rück is one of the biggest reinsurers on the planet. Its number-one insurance services are provided through its subsidiary, ERGO.
Münchener Rück was founded back in 1880 by a man named Carl von Thieme. Von Thieme worked for his father’s insurance company called Thuringia and opted to launch his own firm in Munich, in partnership with Wilhelm von Finck and Theodor von Cramer-Klett.
Today, Münchener Rück offers reinsurance protection for everything from life and health, as well as businesses in the transport, aviation, space and engineering sectors. As of 2020, its total assets weighed in at almost €298bn. All of which explained why leading investor Warren Buffett was once the biggest Münchener Rück shareholder, although as of 2015 his shareholding had been reduced to below 3%.
The share price of Münchener Rück has generated solid and steady returns over time. Between 1998 and 2022, the price of Münchener Rück shares has risen by over 44%. The share price peaked at €366.31 in November 2000, before falling hard in the early 2000s, reaching lows of €60.93 in April 2003.
Since the Münchener Rück share price bottomed out in April 2003, it has been on a bullish incline ever since, which explains Warren Buffett’s interest in the company. By the time the Covid-19 pandemic struck, Münchener Rück shares had reached €282.30 in February 2020, before crashing to €156.75 the following month, a price not seen since 2016.
Since the pandemic, the Münchener Rück share price has recovered strongly, reaching €307.70 in early January 2023 – a value for the company not seen in over two decades.
There are several competitors to Münchener Rück when it comes to the global reinsurance industry. Hannover Rück is a prime example, although its global workforce isn’t even a tenth of the size of Münchener Rück. Hannover Rück is said to be worth almost $24bn, with offices located in Europe, Asia, South America and Oceania.
It’s also worth noting other major US financial service firms like Morgan Stanley are also a competitor due to their own reinsurance products.
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