Balance rating life: 13 providers with the highest grade


November 30, 2020 – Allianz received the highest number of points in the current Map Report 917 “Balance sheet rating of German life insurers 2019”. Europa secured silver, while Ideal took bronze. Hannoversche, LV 1871, Dialog, Ergo Vorsorge, Condor, Deutsche Ärzte, R + V AG, Axa, Alte Leipziger and Swiss Life also received the top grade “mmm”.

On Friday, the Map Report editorial team presented a “balance sheet rating of German life insurers” for the first time with issue 916 – as previously in private health insurance (VersicherungsJournal 31.8.2020). The analysts examined 58 companies.

“The following applies to all key figures and the evaluation: When determining the limit value for the balance rating, all providers are taken into account,” explains the background in the current issue. This also included insurers in run-off or without new business.

Only market participants with an annuity insurance portfolio of more than 15,000 policies were taken into account in the assessment. “Outliers upwards and downwards are not taken into account when averaging. The resulting results are rounded, ”the map report continues.

So was rated

The framework for the assessment in the balance sheet rating was made up of twelve key figures from “A” for closing costs to “R” for interest rate requirement to “V” for administrative costs. “With a broad assessment approach, a comprehensive insight into the strengths and weaknesses of the companies is given,” said the analysts.

In order to smooth out short-term influences, but not to ignore them, five-year averages (2015 to 2019) were calculated with one exception. A three-year average (2017 to 2019) was only calculated for solvency.

Map-Report 917 evaluation (Image: Franke and Bornberg)

A maximum of between ten and 80 points could be achieved in the key figures. The results in the twelve segments were added up and the result condensed into an overall grade. A total of 400 points could be achieved. From 300 points (75 percent of the maximum number of points) the top grade “mmm” was awarded.

The best life insurers

Allianz Lebensversicherungs-AG achieved the highest number of points (361 points). The company received the maximum number of points in terms of solvency, total reserve, rate of return, current average interest, administrative costs and cancellation. In terms of security, however, it was only enough for the bottom third.

In the latter area, Europa Lebensversicherung AG, which occupies second position with 349 points, achieved the maximum number of points. The same also applies to the solvency, cancellation, rate of return, acquisition and administration costs and RfB allocation segments. The company performed well below average in terms of net and current average interest rates.

Map-Report 917 ranking list (Image: Franke and Bornberg)

Ideal Lebensversicherung aG secured bronze with 343 points. The Berliners left points above all with regard to security equipment and administrative costs. The company achieved the maximum number of points for solvency, total reserves, actuarial interest requirements and charges, current average interest rates and RfB allocation.

The three aforementioned market participants also received the top rating “mmm”

Reference note and further course content

The map report number 917 – “Balance sheet rating of German life insurance 2019” has been published by Franke und Bornberg Research GmbH. On 203 pages, it contains detailed rating results as well as overviews of numerous balance sheet figures (financial year 2019) from 80 providers.

Tables are also provided for further key figures on the development of existing and new business. The booklet is available as an e-paper from EUR 353.85 gross on the Franke und Bornberg order page.

Further research by life insurance companies

The company quality of life insurers is also rated by other analysts. Morgen & Morgen GmbH (M&M) recently examined 63 German life insurers (November 10, 2020).

In October, Ascore Das Scoring GmbH scoring 65 German life insurers (October 17, 2020). DFSI Ratings GmbH examined 36 companies that were “market-relevant” according to their own information (23.10.2020).

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