According to Fitch Ratings, German non-life insurers continue to show resilience to natural catastrophes. In 2021, the combined ratio for the entire sector stood at 96%, which was consistent with the rating agency's expectations.
For the financial year 2022, Fitch Ratings [4] expects a combined ratio of 93%, a percentage that remains unchanged since the beginning of the year despite the storms that hit Germany in February 2022. The loss cost is estimated at 750 million EUR (781.92 million USD), which would impact the combined ratio of the P&C insurance companies by about one point.
The financial strength ratings of most German non-life insurers remain in the "A" category, reflecting the companies' good capitalization, their resilient profits and their solid commercial profiles.
The 2022 outlook for the German insurance market is neutral.
Read also | Outlook of the German non-life insurance market in 2026 [5]