AM Best Affirms Credit Ratings of Munich Reinsurance Company and Its Subsidiaries
The ratings reflect Munich Re's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management.
Munich Re's balance sheet strength is underpinned by its risk-adjusted capitalisation that exceeds the level required to support the strongest assessment, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects Munich Re's risk-adjusted capitalisation to remain at the strongest level, despite the group's exposure to potentially large losses and its record of substantial dividend payments and share buybacks. In addition, the group benefits from excellent financial flexibility and a relatively low financial leverage with a robust coverage ratio.
The group's operating performance is strong, demonstrated by a net profit of EUR 5.7 billion in 2024 (2023: EUR 4.6 billion) with a return-on-equity ratio standing at 18.1% (as calculated by AM Best). The group's property/casualty (P/C) reinsurance division, which includes global specialty insurance business in 2024, reported a net profit of EUR 3.2 billion with natural catastrophe and man-made losses largely in line with budget at EUR 3.9 billion. Munich Re's life & health reinsurance division and ERGO reported net profits of EUR 1.7 billion and EUR 0.8 billion, respectively, demonstrating the benefits of the group's good earnings diversification. Furthermore, increased investment results contributed significantly to Munich Re's annual results.
Munich Re is a leading global reinsurer and its business profile benefits from excellent diversification, with the performance of its various life, health and P/C operations largely uncorrelated. Given its global market presence and excellent brand, the group is well-positioned to benefit from improved reinsurance market conditions.
The FSR of A+ (Superior) and the Long-Term ICRs of "aa" (Superior) have been affirmed with stable outlooks for Munich Re and its following subsidiaries:
Great Lakes Insurance SE
Great Lakes Insurance UK Limited
New Reinsurance Company Ltd.
Munich Reinsurance America, Inc.
The Princeton Excess and Surplus Lines Insurance Company
American Alternative Insurance Corporation
Bridgeway Insurance Company
Munich American Reassurance Company
Munich Reinsurance Company of Canada
Temple Insurance Company
American Family Home Insurance Company
American Modern Home Insurance Company
American Modern Lloyds Insurance Company
American Modern Select Insurance Company
American Southern Home Insurance Company
American Western Home Insurance Company
American Modern Property and Casualty Insurance Company
Munich Re of Bermuda, Ltd.
Digital Advantage Insurance Company
ERGO Insurance Pte. Ltd.
The following Long-Term IRs have been affirmed with stable outlooks:
Munich Re America Corporation—— "a" (Excellent) on USD 500 million 7.45% senior unsecured notes, due 2026
American Alternative Insurance Corporation—— "a+" (Excellent) on USD 92.5 million 5.0% surplus notes
The Princeton Excess and Surplus Lines Insurance Company—— "a+" (Excellent) on USD 20.1 million 5.0% surplus notes
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250717385568/en/
Contacts
Jose Berenguer, CFA Associate Director, Analytics +31 20 808 2276 jose.berenguer@ambest.com
Dr. Mathilde Jakobsen Senior Director, Analytics +31 20 808 3118 mathilde.jakobsen@ambest.com
Dan Hofmeister, CFA, FRM, CAIA, CPCU Associate Director +31 20 808 3118 dan.hofmeister@ambest.com
Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1 908 882 2318 al.slavin@ambest.com
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