Fitch Ratings affirms Muncih Re's rating

The rating agency Fitch Ratings has confirmed Munich Re's AA (Very Strong) financial strength and AA long-term issuer default rating (IDR). The outlook for both ratings is stable.

According to Fitch Ratings, the reinsurer shows a "very strong" risk-adjusted capitalization and a solid financial performance. There is however a risk that the economic disruption caused by the Coronavirus pandemic could lead to a decline in Munich Re's financial performance.

In H1 2020, the group's non-life reinsurance activity achieved a combined ratio of 103% compared to 93% in H1 2019 and a return on equity (ROE) of 7.1% against 11.5% six months earlier.