Fitch Ratings has upgraded Swiss-based reinsurer Echo Reinsurance Limited (Echo Re)’s Insurer Financial Strength (IFS) rating to A+ from A, with a stable outlook.
Fitch said the upgrade reflects Echo Re’s strengthening strategic importance within its parent DEVK Group, driven by continued financial performance, growing geographic diversification and “increasing synergies” with its sister company DEVK Re.
The ratings continue to reflect Echo Re’s ownership of DEVK, which was also upgraded from ‘bbb+’ due to lower business risks, significant geographic diversification, “very strong capital strength” and structural improvements in financial performance.
Fitch explained that it considers Echo Re to be “core” to its German mutual insurance parent DEVK. In addition, the reinsurer plays a key role in DEVK’s reinsurance strategy by diversifying the Group’s business through strategic international reinsurance and making a positive contribution to profitability.
In addition, DEVK’s ownership provides Echo Re with risk management, retrocession coverage and capital support. Fitch also believes DEVK will provide a capital injection, if needed, to maintain Echo Re’s very strong capital position, which has been demonstrated several times in recent years.
Fitch’s assessment of Echo Re’s capitalization is driven by its Swiss solvency test ratio of 262% at end-2025, compared with 238% at end-2024, improving due to stronger risk diversification. The company received a higher rating of “Very Strong” in Fitch’s Prism Global model at the end of 2025 and is expected to maintain the same capital level in 2026.
Additionally, Echo Re’s corporate profile benefits from its broadly diversified and stable portfolio. Total written premiums remained stable in 2025, primarily due to softer reinsurance markets.
Fitch said: “We believe Echo Re’s continued, selective underwriting practices reduce business risk. The insurer’s small size limits its competitive position to some extent, but this is offset by its strong business relationships and diversification across geographies and segments. We expect total written premiums to rise again in 2026, driven by organic expansion.”
In 2025, Echo Re’s net combined ratio will increase to 88.3% from 89.7% in 2024, and its net profit return on equity will be 7.8%. Net profit fell to CHF 17 million in 2025 from CHF 20 million in 2024 due to the CHF 23 million allocated to the equalization reserve. Fitch calculates that the net combined ratio will deteriorate slightly to 90%-92% in 2026 due to weak market conditions, but will still be consistent with the rating.
Finally, Fitch views Echo Re’s provisioning practices as prudent, as the company reported a prior-year reserve drain rate of 12% through the end of 2025. Fitch will continue to evaluate the company’s performance, which could result in potential changes to the current rating and outlook.
Fabian Pütz, CEO of Echo Re, commented: “This upgrade fully proves that Echo Re The very positive trajectory achieved in recent years. More importantly, it is a testament to the dedication, expertise and hard work of our entire team, who have successfully built a diverse and resilient portfolio while strengthening our partnerships around the world. We are grateful for the continued trust and support of our clients, brokers and business partners. This achievement inspires us to continue to invest in our people, our capabilities and our business for the long term.” “
Echo Re management said: “We would like to thank all colleagues, customers, brokers and business partners who have contributed to this success. We look forward to continuing to work together to create sustainable value for our global stakeholders.
“This achievement is a strong recognition of the progress we have made in recent years. By building a diversified and resilient portfolio, strengthening our underwriting capabilities and deepening relationships with trusted partners around the world, we further strengthen Echo Re’s position in the global reinsurance market.”
