Thursday 13 November 2014

MüRe report Q3 2014

MüRe, Q3, 2014, front page

My oldest and also among my best holdings, Münchener Rückversicherung, arrived with their quarter three report. The market was disappointed since the share price was down by a bit more than -1% on the day of publication but that matters little to me. What was in the report?

To read the report in full please go here and to read my latest summary concerning MüRe please see Münchener Rückversicherung report Q2 2014.

Starting off by looking at the key figures then things are in my opinion not bad at all. Earnings were increased with over 14% in the running nine months and 17% compared to Q3 in 2013. The earnings per share is already up at over 14 € so unless a huge catastrophe happens during the final quarter I at least hope to receive the same amount of dividends as last year. The book value per share has jumped up with an additional 16% and is now at 170 € per share so higher than what the share is being traded at. The reason for the great EPS and BVPS is two-fold. Firstly they are earnings wise having yet another great year and secondly they have bought back plenty of shares which is pushing things one step higher.

MüRe, Q3, 2014, key figures

When we take a look at the financial statement for the running nine months then we see that the revenue has kept dropping and MüRe seems to have a harder and harder time to write Gross Premiums. However the trend is not downwards quarter per quarter but more general that they are each quarter writing less premiums in comparison to in 2013. An additional good thing is that they are doing better with their investment result which have brought in a couple of extra millions during the running nine months even though the quart three was very poor.

MüRe, Q3, 2014, financial statement

Conclusion: MüRe is still doing very well and the year has as of yet been calm for them. I hope that the final quarter will also be calm so that I can maybe even receive an increased dividend payment even though I would be happy with the payment as it is. I will of course remain as a shareholder. MüRe for me is like a bank account with high interest and the possibility to grab more when an accident happens.

To find out more about MüRe please click on analysis of Münchener Rückversicherung (MüRe) 2014.

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