Munich Re revealed its plans to repurchase up to 1.5 billion euros ($1.62 billion) worth of shares and put forth a boosted dividend proposal for the year 2023.
Share Buyback Details
The German reinsurer disclosed on Monday that the buyback initiative is contingent upon the approval of the praesidium and the sustainability committee of the supervisory board. The buyback program is scheduled to commence on April 26 and will conclude on the company’s annual general meeting, set for April 30, 2025, at the latest.
Increased Dividend Proposal
In addition to the buyback announcement, Munich Re’s management board recommended a dividend of EUR15 per share for 2023. This marks a significant increase from the previous year’s dividend of EUR11.60 per share, reflecting a growth of 29.3%. At Monday’s closing price of EUR421.50, the current dividend provides a yield of 2.75%, while the proposed dividend would offer a yield of 3.56% based on the day’s stock price.
Capital Repatriation Plans
The company clarified that the payment of the dividend is subject to approval at the annual general meeting. Furthermore, Munich Re outlined that its total capital repatriation will reach EUR3.5 billion.
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