These nine composite insurers received the top rating

Ascore took a close look at property insurers for its last rating this year. The analysis company, which was bought by Softfair in 2018, also used a slightly different methodology in this area. As in previous years, the four main assessment areas remain experience, security, success and continuity. A total of ten assessment-relevant key figures and other supplementary criteria were included in the analysis. The scores were then converted into “compasses”.

Of the 76 providers analyzed, nine composite insurers received the top rating of six compasses.

These nine providers are rated “outstanding”:

· Allianz Insurance AG

· Concordia Insurance Company aG

· Debeka Allgemeine Versicherung AG

· The liability insurance VVaG

· Interrisk Insurance AG Vienna Insurance Group

· LVM Landwirtschaftlicher Versicherungsverein Münster aG

· Medien-Versicherung AG Karlsruhe

· VHV Allgemeine Versicherung AG

· Württembergische Versicherung AG

The number of top-rated insurers fell by one provider. Although Medien-Versicherung Karlsruhe managed to rise to the top ranks, NV-Versicherung and Volkswohl Sachversicherung each lost a compass and are now among the 24 “awarded” providers.

With just one compass, no provider was defined as “weak”. This year, only one insurer, Waldenburger Versicherung, received the grade “sufficient”.

The points are distributed according to the relative scoring method. The individual key figures are evaluated in comparison to the market. For each criterion fulfilled, either a full or a half point is awarded in the evaluation. The analysts continued to refrain from weighting the individual criteria directly.

In the “Success” area, some key figures have been slightly modified: The key figures for the actuarial earnings ratio before and after equalization reserves, as well as the equalization reserve ratio, were now calculated in relation to the gross instead of net premiums earned, in contrast to the previous year. Instead of the net cost and net loss ratio, the gross key figures are also analyzed.

General trends in composite insurance

• In terms of key safety figures, the situation is quite stable across the industry: In the past financial year, property insurers were able to increase their equity (including subordinated liabilities and less announced dividend payments) by a total of EUR 1 billion to EUR 16.6 billion.

• In relation to the total industry value of the net premiums earned, the equity ratio fell by a minimal 0.1 percentage point to 38.8 percent in 2019.

• For the solvency ratios (mean values ​​of the past three years), the minimum size of 100 percent is exceeded by all property insurance companies.

• Overall, a positive change can be observed in the key performance indicators compared to the previous year. The gross claims ratio across the industry fell from 67.4 percent in 2018 to 66.0 percent in the 2019 financial year.

• Despite the slight increase in the gross expense ratio by around 0.1 percentage points to 27.2 percent, the underwriting earnings ratio before claims equalization reserves increased from 4.2 percent in 2018 to 5.0 percent in 2019. The net combined ratio of 93.8 percent was below the previous year’s value of 94.9 percent.

• The investment result in relation to the net premiums earned rose from 8.0 percent (2018) to 8.9 percent.

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