Munich Re Co. will buy back up to 11 million shares for a maximum total purchase price of €1 billion and said it expects to generate a profit up to €2.5 billion in 2018.
The shares will be repurchased between April 25, 2018, and April 30, 2019, at the latest. A similarly sized buyback program is ongoing and is scheduled to be completed before the 2018 annual general meeting, Munich Re noted. The shares acquired under the ongoing buyback program will be retired.
The German reinsurer also said it is aiming for a full-year 2018 consolidated result of between €2.1 billion and €2.5 billion, slightly above the 2017 profit guidance of €2.0 billion to €2.4 billion. Munich Re recently posted full-year 2017 attributable profit of €375 million, weighed down by natural catastrophe losses.
The company aims to report a technical result in life and health reinsurance of at least €475 million and a combined ratio in property and casualty reinsurance of around 99%. It also expects unit ERGO Group AG to post a consolidated result of between €250 million and €300 million.
Meanwhile, Munich Re's supervisory board proposed Kurt Bock as a director to succeed Ron Sommer, who will step down from the board with effect from April 25.
