Munich Re dividend approved despite COVID-19 pressure

Munich Re shareholders have approved a dividend of €9.80 per share at the reinsurer’s annual general meeting (AGM), despite mounting pressure from the COVID-19 pandemic.

The AGM, which was held online due to the pandemic, also granted renewed authorisation to buy back shares and elected Carsten Spohr to the Supervisory Board. Spohr is also Chairman of the Executive Board of Deutsche Lufthansa AG and succeeds Kurt Wilhelm Bock, who retired upon conclusion of the AGM.

“Munich Re’s capitalisation remains very solid,” said Joachim Wenning, Chairman of the Board of Management at Munich Re. “With our strong balance sheet, we remain a reliable partner to our clients. We are furthermore confident of emerging relatively stronger from the coronavirus crisis and of being able to avail of the opportunities likely to arise.”

Wenning continued: “Although we cannot yet foresee the exact effects of the coronavirus at this time, one thing is certain: our Group is in a solid economic position. The probable short- and long-term costs of the pandemic are substantial. But for Munich Re, these will stay financially well manageable.”

The Chairman also opposed the suggestions of some politicians that insurers ought to be liable for the pandemic-related costs of businesses and private individuals – even if their policies explicitly or implicitly exclude the costs.

“Retroactive intervention in contracts is incompatible with the principles of the rule of law, and would severely damage the foundations of insurance and hence its benefits to progress and growth,” he argued. “We are relying on governments not to call these fundamental principles into question.”

Source: Reinsurance News