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, 85 KB)
Fitch AA (Very strong) stable 21.07.2015 Download (PDF, 725 KB)
Fitch Affirms Munich Re's IFS Rating at 'AA'; Outlook Stable (PDF, 55 KB)
Moody's Aa3 (Excellent) stable 17.03.2005 Download (PDF, 1.3 MB)
S&P Global Ratings AA- (Very strong) stable 22.12.2006 Download (PDF, 593 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+
Bridgeway Insurance Company 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 AA-
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“) benefits from parental a guarantee issued by Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München („Guarantor“). The guarantees cover all of the payment obligations of insurance and reinsurance contracts issued by MRoA. The guarantees are unconditional and continuing and shall be binding upon the Guarantor. The owners of the insurance and reinsurance contracts issued by these subsidiaries are express third party beneficiaries of these guarantees. The obligations of the Guarantor under these guarantees rank pari passu with all other unsecured indebtedness of such Guarantor.

Solvency II

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

Solvency II ratio1

31.12.2020 Prev. Year Change
Eligible own funds² €m 39,919 41,544 -1,625
Solvency capital requirement €m 19,180 17,531 1,649
Solvency II ratio % 208.1 237.0

The eligible own funds as at the balance sheet date take into account deductions for the dividend of €1.4bn agreed by the Board of Management and proposed to the Annual General Meeting for the 2020 financial year.

1Eligible 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 €46.1bn (48.1bn); Solvency II ratio: 240% (274%). 2Negative economic earnings reduced the eligible own funds as at the reporting date by a total of €2.2bn. While the dividend approved by the Board of Management and proposed to the Annual General Meeting for the 2020 financial year also had a reducing effect, the issuing of a subordinated bond and the suspension of the share buy-back – the reducing effect of which had already been recognised as at 31 December 2019 – both had a positive effect. Overall, eligible own funds increased by €0.9bn in the 2020 financial year as a result of capital measures.
An amount of –€0.3bn for other measures was also recognised.

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: 30.09.2021

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: