Munich Re announced it will lower its full-year insurance revenue outlook after a decline in both volumes and prices at the July 1 reinsurance treaty renewal round, signaling a challenging market environment for the German reinsurer.

The company now projects 2026 insurance revenue at 62 billion euros, down from its previous forecast of 64 billion euros, and expects reinsurance revenue to total 38 billion euros, compared with the earlier estimate of 40 billion euros.

Volume of business written at reinsurance treaty renewals fell 9.1% to 2.9 billion euros, while prices adjusted for risk dropped 5.5%, indicating weaker demand and pricing pressure.

Nevertheless, Munich Re reiterated its full-year net profit guidance of 6.3 billion euros, maintaining confidence in its overall profitability despite the revenue contraction.

The downgrade reflects a broader slowdown in the reinsurance sector and the impact of lower premium rates.

These figures were disclosed in a Friday statement that also reaffirmed the net profit target.

The decline in volume and price adjustments contributed to the reduced revenue outlook, highlighting the challenges faced by reinsurers in a tightening market.

Analysts expect the profit guidance to hold if the company can stabilize pricing and renewals in the coming quarters.