{"id":43520,"date":"2026-07-23T20:05:00","date_gmt":"2026-07-23T18:05:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=e7086836bd0bce376001c0ab66be442f"},"modified":"2026-07-23T20:05:00","modified_gmt":"2026-07-23T18:05:00","slug":"am-best-affirms-credit-ratings-of-munich-reinsurance-company-and-its-subsidiaries","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=43520","title":{"rendered":"AM Best Affirms Credit Ratings of Munich Reinsurance Company and Its Subsidiaries"},"content":{"rendered":"

AMSTERDAM--(BUSINESS WIRE)--AM Best <\/b>has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of \u201caa\u201d (Superior) of Munich Reinsurance Company (Munich Re) (Germany) and its subsidiaries. AM Best also has affirmed the Long-Term ICR of \u201ca\u201d (Excellent) of Munich Re America Corporation (Princeton, NJ). Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of American Alternative Insurance Corporation and The Princeton Excess and Surplus Lines Insurance Company. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of all companies and ratings.)<\/p><\/a><\/a>

\nIn addition, AM Best has withdrawn the rating of Munich Re America Corporation as the company has requested to no longer participate in AM Best\u2019s interactive rating process. Additionally, AM Best has withdrawn the FSR of A+ (Superior) and the Long-Term ICR of \u201caa\u201d (Superior) of Digital Advantage Insurance Company (Digital Advantage) (Princeton, NJ) with stable outlooks. Digital Advantage is currently operating as a shell company; thus, a final rating could not be completed due to lack of financial data and other information necessary to support the formation of a current credit rating opinion.<\/p>

\nThe ratings reflect Munich Re\u2019s 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.<\/p>

\nMunich Re\u2019s balance sheet strength is underpinned by its risk-adjusted capitalisation, which exceeds the level required to support the strongest assessment, as measured by Best\u2019s Capital Adequacy Ratio (BCAR). AM Best expects Munich Re\u2019s risk-adjusted capitalisation to remain at the strongest level, despite the group\u2019s 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 adjusted financial leverage ratio of 8.3% at year-end 2025, as calculated by AM Best with no credit given for contractual service margin. Interest coverage at year-end 2025, was strong.<\/p>

\nThe organisation\u2019s operating performance is strong, demonstrated by a net profit of EUR 6.1 billion in 2025 (2024: EUR 5.7 billion) with a return-on-equity ratio standing at 18.5% (as calculated by AM Best). In 2025, the group\u2019s property\/casualty (P\/C) reinsurance division, reported a net profit of EUR 3.3 billion, while the Global Specialty Insurance segment reported a net result of EUR 0.6 billion; both segments benefited from natural catastrophe and man-made losses below budget. Munich Re's life & health reinsurance division and ERGO reported net profits of EUR 1.3 billion and EUR 0.9 billion, respectively, demonstrating the benefits of the group\u2019s good earnings diversification. Furthermore, increased investment results contributed significantly to Munich Re\u2019s annual results.<\/p>

\nMunich Re is a leading global reinsurer and its business profile benefits from excellent diversification, with the performance of its life, health and P\/C operations largely uncorrelated. Given its global market presence and excellent brand, the group is well-positioned to face softer reinsurance market conditions.<\/p>

\nThe FSR of A+ (Superior) and the Long-Term ICRs of \u201caa\u201d (Superior) have been affirmed with stable outlooks for Munich Re and its following subsidiaries:<\/p>