S&P upgrades Munich Re's rating

S&P has upgraded Munich Re's long-term credit and financial strength rating from “AA-” to “AA”. The outlook is stable.

The rating agency's decision is based on the German group's continuous improvement in profitability. In 2023, the reinsurer adopted the new IFRS 17 accounting standards and reported a net profit of 4.6 billion EUR (5.1 billion USD). Return on equity (ROE) for the entire year stood at 16.1%.

Munich Re also reaped the benefits of favorable pricing in the reinsurance market, particularly in the non-life sector.

The company's balance sheet conservatism and its solid reserves will allow it to face a number of challenges, including inflation and financial market volatility.

S&P expects Munich Re to maintain an excellent competitive position and prudent capital management.