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Munich Re sets out five-year growth plan

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Munich Re has released a five-year corporate plan, setting out the list of goals the German reinsurance giant intends to achieve between now and 2025.

Under its Ambition 2025 blueprint Munich Re will retain and bolster its core business model, while advancing its transformation towards new business models.

The business wants to raise its return on equity to 12-14% by 2025 and have at least 40% of managerial positions below the board of management filled by women.

It expects to sustain its profitable growth in reinsurance over the next five years. Property and casualty reinsurance premiums are projected to rise to €31.5 billion ($51.2 billion) by 2025, which would be higher than the €24 billion ($39 billion) it has forecasted for this year.

On the climate change front, the reinsurer aims to reduce by 25-29% the net greenhouse gas emissions in its investment portfolio by 2025, before bringing it down further to net-zero level by 2050.

“Munich Re has already ceased to invest in companies that generate more than 30% of their earnings from coal or by extracting oil from oil sands,” the reinsurer says in the blueprint.

“As for the exploration and production of oil and natural gas (direct and facultative business), Munich Re will be reducing its climate-related industry exposure in such a way that there will be no attributable net CO2 emissions by 2050.”