Fitch Ratings has upgraded the Insurer Financial Strength (IFS) rating of Echo Reinsurance Limited (Echo Re), a Swiss-based reinsurer, from A to A+, with a stable outlook.
The upgrade reflects Echo Re’s strengthened strategic importance within its parent, DEVK Group, supported by sustained financial performance, increasing geographical diversification, and “growing synergies” with its sister company, DEVK Re, says Fitch.
The rating continues to reflect Echo Re’s ownership by DEVK, while DEVK Re was also revised up from ‘bbb+’, driven by the company’s reduced business risk and notable geographical diversification, “very strong capitalisation,” and structural improvements in financial performance.
Fitch explained that it considers Echo Re to be ‘core’ to its German mutual insurance parent DEVK. Additionally, the reinsurer plays a key role in DEVK’s reinsurance strategy by diversifying the group’s business with strategic international reinsurance and a positive contribution to earnings.
Moreover, DEVK’s ownership provides Echo Re with support in risk management, retrocession coverage, and capital. Fitch also believes DEVK would provide capital injections to maintain Echo Re’s very strong capitalisation, if needed, as proven multiple times in recent years.
Fitch’s assessment of Echo Re’s capitalisation is driven by its Swiss solvency test ratio of 262% at the end of 2025 compared to 238% at the end of 2024, improved due to enhanced risk diversification. The firm received an improved score of “Very Strong” in Fitch’s Prism Global model at end-2025, and is expected to maintain the same capitalisation in 2026.
Additionally, Echo Re’s company profile is supported by its widely diversified and stable portfolio. In 2025, gross written premiums remained stable, mostly driven by a softer reinsurance market.
Fitch said, “We consider Echo Re’s sustained, selective underwriting practice to lead to lower business risk. The insurer’s small scale partly constrains its competitive positioning, offset by its strong business relationships, and geographical and segmental diversification. We expect gross written premiums to rise again in 2026, driven by organic expansion.”
In 2025, Echo Re reported an improved net combined ratio of 88.3% from 89.7% in 2024, and a net income return on equity of 7.8%. The net income in 2025 fell to CHF17 million, from CHF20 million in 2024, driven by a CHF23 million allocation to equalisation reserves. Fitch calculations expect the net combined ratio to deteriorate slightly to 90%-92% in 2026, due to softer market conditions, but to remain commensurate with the rating.
Lastly, Fitch views Echo Re’s reserving practice as prudent, as the company reported a strong positive prior-year reserve run-off of 12% at end-2025. Fitch will continue to assess the company’s performance, which could result in a potential change in the current ratings and outlook.
Fabian Pütz, Chief Executive Officer, Echo Re, commented, “This upgrade is a great testament to the very positive trajectory Echo Re has taken in recent years. More importantly, it is a recognition of the dedication, expertise, and hard work of our entire team, who have successfully built a diversified and resilient portfolio while strengthening our partnerships across the globe. We are grateful to our clients, brokers, and business partners for their continued trust and support. This achievement motivates us to continue investing in our people, our capabilities, and our long-term growth.”
Echo Re management stated, “We would like to thank all our colleagues, clients, brokers, and business partners who have contributed to this success. We look forward to continuing our journey together and creating sustainable value for our stakeholders worldwide.
“This achievement is a strong endorsement of the progress we have made over recent years. By building a diversified and resilient portfolio, enhancing our underwriting capabilities, and deepening relationships with trusted partners around the world, we have further strengthened Echo Re’s position in the global reinsurance market.”
