Kathmandu. The risk-adjusted capitalization of Munich Reinsurance Company (Munich Re) is expected to remain at the strongest level under the Capital Adequacy Ratio (BCAR). It is expected to remain there despite large losses as well as large dividend payouts and share recovery.
According to AM Best, the company has the strongest balance sheet, strong operating performance, excellent business profile and strong enterprise risk management. “Munich Relay also benefited from strong financial resilience and a low adjusted financial leverage ratio of 8.3 percent at the end of 2025,” ratings agency AM Best said. Interest coverage also remained strong. ’
According to AM Best’s calculations, Munich Relay will generate a net profit of $7 billion in 2025. That’s a return on equity of 18.5 percent, up from $6.5 billion in 2024. The property and casualty reinsurance business generated a net profit of $3.8 billion, while the global specialty insurance sector generated $0.7 billion. This has been helped by less than budgeted natural disasters and man-made damage.
The company earned a net profit of $1.5 billion on life and health reinsurance and contributed $1.0 billion from ERGO. AM Best said the group’s diversified earnings and strong investment returns supported its overall financial performance.
According to AM Best, Munich Rico’s global presence, strong brand and differentiated operations in life, health and property and casualty reinsurance position the group well to manage difficult conditions in the reinsurance market. –Agency
