Insurance Financial Strength Rating
Assessment of an insurance company's ability to meet its obligations towards policyholders. For many years Munich Re has been one of the reinsurers with excellent ratings.
The Munich Re Group is subject not only to the supervisory requirements applying to individual insurance companies but also to supervision at Group level. Solvency in the case of insurance companies is generally understood to be the ability of an insurer to always meet the obligations assumed under its contracts.
A Credit Default Swap (CDS) is a tool for hedging credit risk. By buying a CDS, a market participant hedges certain risks arising from credit relationships in exchange for a premium, which is referred to as a CDS Level. The higher the level, the higher the default risk estimated by the market for the issuer.