Swiss reinsurer Echo Re has received two upgrades from S&P Global Ratings. Its strategic status within parent DEVK Insurance Group has risen, and its financial risk profile has strengthened. The 'A' rating itself remains unchanged, with a stable outlook.
S&P affirmed the 'A' long-term issuer credit and financial strength ratings on Echo Rueckversicherungs AG (Echo Re). The company is the Swiss reinsurance subsidiary of German mutual insurer DEVK Insurance Group.
Two changes drove the action. S&P revised Echo Re's group status to highly strategic from strategically important. It also revised the financial risk profile to strong from fair.
The group status upgrade reflects Echo Re's growing contribution to the group. In 2025, Echo Re's consolidated net income exceeded 30% of the DEVK group total. It produces approximately 30% of DEVK's total reinsurance gross written premium and 7.3% of the group's overall premium revenue. Including specialty lines managed by Echo Re as an underwriting hub for sister company DEVK Re, those shares rise to approximately 50% and 13.5% respectively.
Since June 2025, both reinsurance carriers have operated under the joint leadership of Echo Re's chief executive. S&P said operational integration is expected to continue strengthening under a joint reinsurance strategy.
The group status revision does not affect Echo Re's 'A' rating. That rating already sits one notch below the 'A+' ratings on DEVK's core operating subsidiaries.
That internal deepening has run alongside outward geographic expansion. In March 2026, Echo Re opened its first branch outside Zurich at India's GIFT City financial hub. The reinsurer reported gross written premiums of US$482 million in 2024, with Asia accounting for 61% of its book.
CEO Fabian Pütz said the move provides "a gateway to the wider Indian Subcontinent and beyond."
The financial risk profile revision reflects improved capital adequacy. Echo Re recorded a net combined ratio of 90% in 2025. Return on equity was 8% after allocations to the equalisation reserve under local GAAP. Echo Re's Swiss Solvency Test (SST) ratio stood at 262% at year-end 2025.
S&P said the company exceeded the capital requirement of an extreme stress scenario in its risk-based model. Capital position is expected to remain sustainably above the 99.99% confidence level over the forecast horizon.
S&P also revised Echo Re's risk exposure from high to moderately high. Enhanced diversification and stricter exposure risk controls were cited as drivers.
The Echo Re action fits a broader pattern of S&P activity across the reinsurance sector. S&P took eight rating actions on the top 19 global reinsurers between January and August 2025, with most being positive. Those actions were attributed to enhanced earnings diversification, stronger capital positions, and improved funding structures. S&P forecast a sector combined ratio of 94% to 96% for 2025 and 95% to 98% for 2026. Echo Re's own 95% or below target for 2026-2028 sits within that range.
The stable outlook reflects Echo Re's importance to DEVK and the stable outlook on the parent group.
