Ratings and Solvency

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.

Ratings of Munich Re

Rating agency Rating Outlook Last rating modification Reports
A.M. Best¹ A+ (Superior) stable 07.12.2017 Download (PDF, 106 KB)
Fitch AA (Very strong) stable 06.07.2016 Download (PDF, 600 KB)
Moody's Aa3 (Excellent) stable 17.03.2005 Download (PDF, 1.2 MB)
S&P Global Ratings AA- (Very strong) stable 22.12.2006 Download (PDF, 110 KB)

Insurance financial strength ratings of Munich Re’s subsidiaries

Subsidiary of reinsurance group

A.M. Best Fitch Moody's S&P
American Alternative Insurance Corporation A+ AA-
American Modern Insurance Group A+
Digital Partners A+
Great Lakes Insurance SE A+ AA-
Munich American Reassurance Company A+ AA-
Munich Reinsurance America A+ AA Aa3 AA-
Munich Re America Corporation (counterparty credit rating)   a A-
Munich Reinsurance Company of Africa Ltd.² A-
Munich Reinsurance Company of Australasia Ltd. AA-
Munich Reinsurance Company of Canada A+ AA-
Munich Re of Bermuda, Ltd. A+ AA-
Munich Re of Malta p.l.c. AA-
Munich Re Trading LLC A+
New Reinsurance Company Ltd. A+ AA-
The Hartford Steam Boiler Group A++ AA
The Princeton Excess and Surplus Lines Insurance Company A+ AA-
Temple Insurance Company A+ A+

Subsidiary of primary insurance group

A.M. Best Fitch Moody's S&P
D.A.S. Legal Expenses Insurance Company Limited (Great Britain) A+
D.A.S. Rechtsschutz AG (Austria) A
DKV Deutsche Krankenversicherung AG AA AA-
ERGO Insurance Pte. Ltd.  (Singapore) B++
ERGO Versicherung AG AA-
ERGO Group AG (counterparty credit rating) AA- A
ERGO Reiseversicherung AG AA
Europaeiske Rejseforsikring A/S (Denmark) A+
ERGO Vorsorge Lebensversicherung AG AA
¹ "Best's Rating Reports reproduced on this site appear under licence from A.M. Best Company and do not constitute, either expressly or implicitly, an endorsement of (Rated Entity)'s products or services. Best's Rating Reports are the copyright of A.M. Best Company and may not be reproduced or distributed without the express written consent of A.M. Best Company. Visitors to this website are authorised to print a single copy of the rating report displayed here for their own use. Any other printing, copying or distribution is strictly prohibited. Best's ratings are under continual review and subject to change or affirmation. To confirm the current rating visit www.ambest.com.   ² Munich Reinsurance Company of Africa Ltd. („MRoA“) profitiert von einer Garantie ihrer Muttergesellschaft Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München („Garantiegeberin“).  
Die Garantie erstreckt sich auf alle Zahlungsverpflichtungen aus von MRoA gezeichneten Rückversicherungsverträgen. Die Garantie ist an keine Bedingungen geknüpft, fortlaufend und für die Garantiegeberin bindend. Die Vertragspartner von MRoA aus Rückversicherungsverträgen sind ausdrücklich Drittbegünstigte der Garantie. Die Verpflichtungen der Garantiegeberin aus der Garantie stehen im Rang allen anderen unbesicherten Verbindlichkeiten der Garantiegeberin gleich.

Solvency II

The solvency ratio under Solvency II is the ratio of the
eligible own funds to the solvency capital requirement.

Solvency II ratio1

31.12.2018 Prev. Year² Change
Eligible own funds³ €m 35.995 35.060 935
Solvency capital requirement €m 14.670 14.353 317
Solvency II ratio % 245,4 244,3

The eligible own funds as at the balance sheet date take into account deductions for the dividend agreed by the Board of Management for the 2018 financial year of €1.3bn, and purchases not yet made under the share buyback programme for 2018/2019 in the amount of €303m. In order to make the effects of potential further capital measures on the Solvency II ratio transparent to financial statement users, we further recognise a possible share buy-back programme for 2019/2020 in the amount of €1bn. At the time the consolidated financial statements were prepared, this had neither been resolved nor approved by the competent bodies.

  1 Eligible own funds excluding the application of transitional measures for technical provisions; including the application of transitional measures for technical provisions, the own funds amounted to €43.2bn (42.6bn); Solvency II ratio: 295% (297%).

2 The redemption of a subordinated bond callable in 2018 in the amount of £300m had already been anticipated as a deduction in eligible own funds for the 2017 financial year, and was made accordingly in 2018.

3 Economic earnings and the newly issued subordinated bond increased the eligible own funds as at the reporting date by a total of around €3.2bn. At the same time, the dividend approved by the Board of Management for the 2018 financial year and the potential 2019/2020 share buy-back had a reducing effect of approximately €2.3bn.

CDS Spread

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.

Development of Munich Re’s five-year CDS compared to the CDS indexes iTraxx Europe and iTraxx Senior Financials with the same maturity respectively. The iTraxx Europe encompasses 125 major European companies. The iTraxx Senior Financials is composed of 25 European financials.

Source: Bloomberg, Datastream

Status: 30.09.2019

Further Information

Detailed information on the rating of individual Munich Re (Group) companies as well as general rating categories can be found on the websites of the rating agencies:
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