AM Best Affirms Credit Ratings of Munich Reinsurance Company and Its Subsidiaries
2024年7月19日 - 12:30AM
ビジネスワイヤ(英語)
AM Best has affirmed the Financial Strength Rating (FSR)
of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “aa” (Superior) of Munich Reinsurance Company (Munich Re)
(Germany) and its subsidiaries. AM Best also has affirmed the
Long-Term ICR of “a” (Excellent) of Munich Re America Corporation
(Munich Re America) (Princeton, NJ) and its associated Long-Term
Issue Credit Ratings (Long-Term IR). The outlook of these Credit
Ratings (ratings) is stable. See below for a detailed listing of
all companies and ratings.
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
10-year weighted average return-on-equity (ROE) ratio of 8.8%
(2013-2022) (based on IFRS 4, as calculated by AM Best). In 2023,
under IFRS 17, Munich Re reported a net profit of EUR 4.6 billion
(2022: EUR 5.3 billion) with ROE standing at 16.1% (as calculated
by AM Best). The group’s property/casualty (P/C) reinsurance
division reported a net profit of EUR 2.4 billion with natural
catastrophe and man-made losses slightly below budget at EUR 3.3
billion. Munich Re's life & health (L&H) reinsurance
division and ERGO reported net profits of EUR 1.4 billion and EUR
721 million, 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.
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Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Jose Berenguer, CFA Associate Director, Analytics
+31 20 808 2276 jose.berenguer@ambest.com
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Relations +1 908 882 2310
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Dr. Mathilde Jakobsen Senior Director, Analytics
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908 882 2318 al.slavin@ambest.com
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882 1737 gregory.dickerson@ambest.com