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Do Directors Own Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft (FRA:MUV2) Shares?

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Every investor in Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft (FRA:MUV2) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

Münchener Rückversicherungs-Gesellschaft is a pretty big company. It has a market capitalization of €31b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about MUV2.

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Check out our latest analysis for Münchener Rückversicherungs-Gesellschaft

DB:MUV2 Ownership Summary, May 25th 2019
DB:MUV2 Ownership Summary, May 25th 2019

What Does The Institutional Ownership Tell Us About Münchener Rückversicherungs-Gesellschaft?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors own 40% of Münchener Rückversicherungs-Gesellschaft. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Münchener Rückversicherungs-Gesellschaft's earnings history, below. Of course, the future is what really matters.

DB:MUV2 Income Statement, May 25th 2019
DB:MUV2 Income Statement, May 25th 2019

We note that hedge funds don't have a meaningful investment in Münchener Rückversicherungs-Gesellschaft. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Münchener Rückversicherungs-Gesellschaft

The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own under 1% of Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in their own names. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amount to less than 1%, we can see that board members collectively own €11m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- mostly retail investors -- own 60% of Münchener Rückversicherungs-Gesellschaft . With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Münchener Rückversicherungs-Gesellschaft better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.