S&P Global Ratings has upgraded Swiss reinsurer Echo Rueckversicherungs AG (Echo Re) long-term issuer credit and financial strength rating from ‘A-’ to ‘A’ with a stable outlook.
The upgrade reflects Echo Re’s continued track record of solid and sustainable underwriting and operating performance, aligning with higher-rated peers in 2023.
S&P stated, “We expect the performance will be sustainable and in line with that of global reinsurance peers over 2024-2026.”
Additionally, Echo Re’s competitive position has strengthened in recent years, contributing to the rating upgrade.
S&P also revised Echo Re’s business risk profile from fair to satisfactory.
S&P explained, “The stable outlook reflects our expectation that Echo Re will expand its business franchise while preserving profitability and solid capital and earnings. The company’s stand-alone credit profile (SACP) is ‘bbb’ and the final rating is further uplifted by its strategic importance to DEVK, which will provide financial and liquidity support if necessary.”
Looking ahead, S&P noted, “We could raise our ratings on Echo Re if Echo Re’s group status strengthened to “core”. Yet we see this as unlikely, given Echo Re’s limited business and operational overlap with the rest of the group.”
