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||21.07.2015||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, 406 KB)|
Insurance financial strength ratings of Munich Re’s subsidiaries
Subsidiary of reinsurance group
|American Alternative Insurance Corporation||A+||AA-|
|American Modern Insurance Group||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
|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|
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.
The solvency ratio under Solvency II is the ratio of the
eligible own funds to the solvency capital requirement.
Solvency II ratio1
|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.
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.
Source: Bloomberg, Datastream