Mecklenburgische Kranken takes first place in the ranking for the first time. In previous years, it ranked fourth and second, respectively, thus demonstrating steady improvement. With an economic equity ratio (economic equity to total assets) of 51.4%, it is significantly ahead of runner-up and last year’s winner, R+V Kranken (economic equity ratio of 24.7%). Third place on the podium goes to ENVIVAS Kranken (economic equity ratio of 22%). This year, the observation that size alone does not lead to financial strength has been confirmed. Numerous industry giants are below market average: Allianz (22nd place), ERGO (28th place), AXA (29th place), Generali (31st place), and DKV (32nd place). A total of 32 German health insurers were analyzed and assessed for their financial strength. Two metrics are central to high financial strength: The RealRate valuation model does not use fixed weights but rather determines the fair economic value of a company using a holistic valuation approach. As the graphic shows, the numerous pieces of information from the balance sheet and income statement are gradually combined until they result in the company value, the economic equity. Mecklenburgische’s strength begins with its very strong risk and other results. Combined with the high stability of its portfolio (low portfolio reduction rate), this leads to high expected surpluses. Policyholders also benefit from this through surplus participation. Mecklenburgische Kranken’s greatest strength compared to the market average is its liability valuation reserves, which increase the economic equity ratio by 51 percentage points. The economic equity ratio, as shown in the ranking table, is 51%, 41 percentage points above the market average of 11%. A comparison with previous years shows that the improvement in liability valuation reserves, in particular, contributed to Mecklenburgische Kranken’s rise. The high margins in underwriting and reserving set Mecklenburgische Kranken apart from its competitors. The complete ranking is available at: https://realrate.ai/ranking-area/2023-de-health/ The methodology used is described in “Explainable Artificial Intelligence using the example of ratings of German life insurance companies”, https://elibrary.duncker-humblot.com/article/70819/erklarbare-kunstliche-intelligenz-am-beispiel-von-ratings-deutscher-lebensversicherungsunternehmen The insurance journal also recently reported on this ranking: “These private health insurers are particularly financially strong,” https://www.versicherungsjournal.de/markt-und-politik/diese-privaten-krankenversicherer-sind-besonders-finanzstark-148914
first, equity capital according to the German Commercial Code (HGB), and second, underwriting profitability in the form of risk and other results. Furthermore, the stability of the company’s existence and investment returns also play an important role.
general
RealRate Ranking Der Stärksten Deutschen Krankenversicherer
30
Oct
Oct
