Standard & Poor's (S&P) has confirmed its "A+" rating with a 'Stable' outlook for Dusseldorf-headquartered Deutsche Rück Group. The rating agency has awarded the reinsurer an "A+" rating with a 'Stable' outlook every year since 2016.
The rating encompasses Deutsche Rückversicherung AG in Dusseldorf and Deutsche Rückversicherung Schweiz AG (DR Swiss) in Zurich.
In its recent rating report, Standard & Poor's recognises the Deutsche Rück Group's sustainable, excellent capital and earnings profile, its strong competitive position and its secure earnings situation. These factors are founded on risk-adequate underwriting and an effective retrocession structure.
“The ‘A+’ rating and stable outlook confirm the effectiveness of our strategy of solid, sustainable internationalisation,” said Mr Achim Bosch, CEO of Deutsche Rück.
Internationalisation
The rating agency highlights Deutsche Rück's internationalisation strategy, which it says is driving greater portfolio diversification and growth. In recent years, Deutsche Rück has expanded its standard property & casualty business into the Middle East, Latin America, and South, Southeast and East Asia.
Last year saw the internationalisation of its life and health reinsurance business. In addition to its core markets of Germany and Austria, Deutsche Rück now also underwrites life and health business in selected countries in the Middle East and the Maghreb region.
Against this backdrop, S&P expects the reinsurer's business performance to remain positive and capital development to remain stable.