Berenberg cuts Munich Re to "hold" on limited upside
** Berenberg downgrades German reinsurer Munich Re to "hold" from "buy" as the company's strong performance in the past 24 months offers more limited upside after a pre-reported net profit below consensus expectations
** The brokerage says the company should offset expected high natural catastrophes losses for Munich Re in H2 2024E with high profitability of its non-property and casualty reinsurance operations
** "We estimate that these businesses – ERGO and Life Re – will report net profit run-rates of cEUR1bn and cEUR1.5bn respectively, which combined is half of Munich Re's original EUR5bn net profit target," it adds
** The broker also expects that a more diversified business model means that Munich Re benefits less than its peers from continuing strong market in reinsurance
** Out of 21 analysts, nine rate Munich Re stock "strong buy" or "buy", ten rate it "hold" and two rate it "strong sell" or "sell" - LSEG data
Reporting by Tiago Brandao
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