Current Ratings, Solvency Ratios & CDS Spreads

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Ratings, Solvency Ratios and CDS Spreads

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, 942 KB)
Download latest press release (PDF, 236 KB)
Fitch AA (Very strong) stable 06.07.2016 Download (PDF, 353 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, 364 KB)

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.



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

Solvency II solvency ratio1

    31.12.2017 Prev. year2 Change
Eligible own funds1
€m 35,060 40,667 -5,608
Solvency II capital requirement
€m 14,353 15,256 -903
Solvency II ratio % 244 267  

1 Eligible own funds excluding the application of transitional measures for technical provisions; including the application of transitional measures for technical provisions, the eligible own funds amounted to €42.6bn (48.2bn); Solvency II ratio: 297% (316%).
2 The eligible own funds for 2016 do not take into account deductions for the dividend agreed by the Board of Management for the 2016 financial year, the possible redemption of a subordinated bond with a call option in 2017 and share buy-backs from the 2017/2018 share buy-back programme.

The dividend for the 2017 financial year approved by the Board of Management has been deducted from the eligible own funds as at the balance sheet date. In order to present the impact of possible further capital measures on the Solvency II solvency ratio more transparently for users of our financial statements, we decided to take into account a possible share buy-back programme in 2018/2019 in the amount of €1bn and a possible £300m repayment of a subordinated bond with a redemption option in 2018.

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.

CDS Spread

Source: Bloomberg, Datastream / Status: 30.09.2018

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.

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