AM Best has affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of “aa” (Superior) for Munich Re and its subsidiaries.
According to AM Best, the ratings reflect the group’s balance sheet strength, which is assessed as strongest, along with strong operating performance, a favorable business profile, and very strong enterprise risk management.
Munich Re’s balance sheet strength is supported by risk-adjusted capitalization levels that exceed the benchmark for the strongest assessment.
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AM Best anticipates that capitalization will remain at the strongest level despite exposure to potential large-scale losses and consistent shareholder distributions through dividends and share buybacks. The group is noted to have robust financial flexibility, low financial leverage, and a solid coverage ratio.
In 2024, the group reported a net profit of €5.7 billion, up from €4.6 billion in 2023. AM Best calculated Munich Re’s return on equity at 18.1%. The property and casualty reinsurance segment, including its global specialty insurance business, accounted for €3.2 billion in net profit. Losses from natural catastrophes and man-made events totaled €3.9 billion, which AM Best said were largely within budget expectations.
The 2024 full-year results also exceeded Munich Re’s internal profit target of €5 billion. It marked the fourth consecutive year in which the group surpassed its annual forecast. Revenue from insurance contracts reached €60.83 billion, up from €57.88 billion the previous year.
“We’ll remain ambitious as we seek to boost our annual profit to €6 billion this year. Our confidence here reflects our successful renewals as at January 1, 2025, among other factors,” board chair Joachim Wenning (pictured above) previously said.
The life and health reinsurance division posted a net profit of €1.7 billion, while the ERGO segment contributed €0.8 billion. AM Best highlighted the benefit of Munich Re’s earnings diversification across these segments. The group also saw improved investment results that added to overall earnings for the year.
At the company’s 2025 annual general meeting, shareholders approved a dividend of €20 per share for fiscal year 2024, up from €15 in the prior year. This increase brings the total dividend payout to approximately €2.6 billion.
Munich Re also disclosed a year-end solvency ratio of 287%, significantly above its target range of 175–220%. The high solvency ratio reflects what the group cited as conservative capital management and a favorable reinsurance cycle.
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