Sunday, March 29, 2015

MüRe annual report 2014

MüRe, annual report, 2014, front page

The share price was circulating around the zero which was in a way bad news since the rest of the market was higher. I must say that this report left me with a bit of a bitter taste...

For the full report please visit here and to see the previous summary of MüRe report Q3 2014 or the MüRe annual report 2013 and to find out more about MüRe please click on analysis of MüRe 2014.

The CEOs letter to shareholders is around three pages long and almost for two pages he keep complaining about the central banks, interest rates etc. etc. I did not like this, I did not like it at all since that probably meant that they have positioned themselves completely opposite to the direction the world is going which means less profit from the float and if they start to unwind what they have been doing that will for certain come with additional costs. I am concerned. I started digging into the report a little and from what I found they have a float / investment capital of 146 billion € and from this, after they had paid investment fees etc., they got 785 million € out.... 0.5%... that scared me. Happily their ratio is still below 100% so they do not need the investment money to survive but still...

Below we see that the premiums have kept dropping since 2012, as has the operating result. The earnings per share has remained pretty flat due to massive share buy back programs. They will launch another one for one billion € which I would start to be annoyed over if it had not been for their extremely poor performance with investments so they might as well buy back their own shares. Book value has increased but return on equity is also down. They increased the dividend payment per share which is good but it does not calm me.

MüRe, highlights, annual report, 2014

Conclusion: I am really worried. I wanted MüRe to be a company for life that I would increase my holding in every now and then when a major catastrophe happened and the share price would drop like a stone... I have been an owner of MüRe for 36 months. The share price is up around +84% and I have received 370 € in dividends (total  around +102%). I need to think a little about what to do with MüRe.

What are your thoughts concerning MüRe?

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