Our dividend policy is designed to give our shareholders an appropriate share in the company’s success. The minimum amount set aside for the dividend is 25% of the annual profit. The actual basis, however, is the current dividend level of €6.25 per share, which we will strive not to undercut in future dividend payments, depending on the actual results and the capital position. There have not been any cuts in dividend since 1969.
The dividends are proposed by the Board of Management and based on the financial statement of Münchener Rückversicherungs-AG. The proposed dividend, which is subject to approval by the Supervisory Board and the shareholders, is declared on the day of the AGM.
Based on the closing price for 2010, this meant an attractive dividend yield of around 5.5%. To see what dividend has been paid out over the past few years, click
» here.
In addition to our attractive dividend policy, since 2006 Münchener Rückversicherungs-AG has also used the flexible instrument of share buyback as a further form of capital distribution.
There was a corporate tax credit of slightly more than 2% of the dividend payment attached to the dividend of €3.10 for 2005 (this fact was duly recognised). Due to changes in law there is no tax credit any longer for the years 2006 onwards.
The previous system of taxing dividends based on the half-income method was replaced on 1 January 2009 by the so-called flat-rate tax. Accordingly, the full dividend income of private investors domiciled in Germany will be paid out less a flat-rate tax of 25% (as well as the solidarity surcharge and, where relevant, church tax), unless tax exemption applies. In order to ensure that the tax-exempt allowances (i.e. investment income from interest, dividends and gains on the sale of securities) of €801 for single persons or €1,602 for married couples are taken into account, you should complete an exemption application form and submit it to your bank. Investors liable to taxation in Germany with an average tax rate lower than 25% can choose to include this income in their yearly tax declaration and will be reimbursed any excess tax paid after the relevant tax assessment in the following year.
Foreign private shareholders (i.e. persons neither domiciled nor normally resident in Germany) are subject to limited taxation requirements in Germany in connection with certain investment income. This includes dividends from corporations whose management or seat is located in Germany. Taxation on dividends in Germany is covered by the withholding tax on income. Where a Double Taxation Agreement exists between Germany and the country of residence of the foreign shareholder, the withholding tax on income is generally limited to a maximum of 15% of gross dividend. Normally, there is a standard application procedure. Taxation in the shareholder's country of residence on dividends earned in Germany is subject to the fiscal regulations in the country of residence.
You are entitled to a dividend on any Munich Re shares you have in your deposit on the day of the AGM. Even if you purchase the shares on the day of the AGM, you will receive the dividend since the date that counts is the final day of business. Please ask your bank if you are unsure.
Dividend payment for Munich Re shares is usually the first business day following the AGM.
In accordance with the resolution adopted by the AGM on 2 July 1999, the Company no longer issues effective certificates; accordingly, there are only very few effective certificates in circulation. The stock exchanges trade exclusively in Munich Re shares through the giro transfer system.
Unfortunately not. Now virtually all the Munich Re shares are traded on the giro transfer system for securities. As there are practically no historical securities from share certificate exchanges, we unfortunately have no non-valeurs to offer.
In 2011, the average daily trading volume was approx. 1.16 million shares.
