German reinsurance giant Munich Re has announced plans to buy back shares for a maximum value of €1 billion between the completion of its 2022 and 2023 Annual General Meeting (AGM).
On the basis of the February 21st share price, the €1 billion share buy-back in the period between April 29th, 2022, and the AGM on May 5th, 2023, would amount to roughly 2.8% of the share capital and correspond to 3.9 million own shares.
Munich Re notes that the repurchased shares are to be retired.
At the same time, the company has revealed an increase in the dividend for the 2021 financial year of €1.20 to €11 per share, subject to the approval of the Supervisory Board and the upcoming AGM.
“A major dividend increase and a new share buy-back are great news for our shareholders. An attractive dividend policy remains a trademark of Munich Re,” said Joachim Wenning, Chair of the Board of Management at Munich Re.
The fact Munich Re is able to return all of this capital to its shareholders demonstrates how profitable reinsurance, and Munich Re’s business is right now.
The reinsurer is scheduled to report its fourth quarter and full-year 2021 financial results tomorrow morning.
