Fitch Ratings upgraded Echo Rückversicherungs-AG's Insurer Financial Strength rating to 'A+' from 'A', with a Stable Outlook. The Zurich-based reinsurer is a wholly owned subsidiary of German mutual insurer DEVK Deutsche Eisenbahn Versicherung, itself rated 'A+' Stable by Fitch.
The upgrade has two drivers. Fitch reclassified Echo Re's strategic importance to DEVK from "very important" to "core", which adds a one-notch uplift to Echo Re's standalone credit quality. Fitch also raised that standalone credit quality from 'bbb+' to 'a'. The revision reflected reduced business risk, wider geographical diversification, and improved financial performance.
The "core" designation places Echo Re at the highest tier of strategic importance within DEVK. Fitch assessed that Echo Re now makes more sustained, less volatile contributions to DEVK's profitability than previously recognised. DEVK provides Echo Re with support in risk management, retrocession coverage, and capital. Fitch said DEVK would supply capital injections to maintain Echo Re's capitalisation if needed.
Echo Re's Swiss solvency test ratio improved to 262% at end-2025 from 238% at end-2024. Fitch's Prism Global model score improved to 'Very Strong' from 'Strong' over the same period. Fitch expects capitalisation to remain very strong in 2026.
Echo Re reported a net combined ratio of 88.3% at end-2025, down from 89.7% at end-2024. Net income fell to CHF17 million from CHF20 million in 2024. A CHF23 million allocation to equalisation reserves drove the decline. Return on equity came in at 7.8%, against 10.1% in 2024.
Echo Re's 88.3% result compares with Fitch's P&C sector combined ratio guidance of around 85% for 2026, published in March 2026. Fitch forecast Echo Re's own net combined ratio will deteriorate to 90% to 92% in 2026. The agency said that result remains within the range appropriate for the current rating.
Gross written premiums were stable in 2025 and are projected to rise in 2026 on organic expansion. Global reinsurance capital reached US$648 billion in 2025, per Gallagher Re. Property catastrophe pricing fell 10% to 20% at the January 2026 renewals. Fitch projected sector profitability will decline in 2026 due to lower pricing and rising loss costs.
The Fitch action follows S&P's June 2026 decision to affirm Echo Re at 'A' while revising its group status to "highly strategic" from "strategically important." S&P noted that Echo Re's consolidated net income exceeded 30% of DEVK group total in 2025. Echo Re opened its first branch outside Zurich at India's GIFT City hub in March 2026, with Asia accounting for 61% of its book. Combined non-group premiums from Echo Re and DEVK Re reached €1.41 billion in 2025, across 1,057 clients in 132 countries.
