AM Best places Next Insurance’s ratings under review following Munich Re acquisition

Credit rating agency AM Best has placed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Next Insurance US Company (Next US) under review with positive implications.

This follows the definitive agreement, signed on March 19, 2025, between Munich Re and Next Insurance, Inc. for the global reinsurer to acquire Next Insurance, Inc. and its subsidiaries for $2.6 billion.

NEXT Insurance is to become part of ERGO, Munich Re’s primary insurance arm, with the transaction expected to close in the third quarter of 2025.

This acquisition, encompassing 100% of Next Insurance’s shares, marks a significant expansion into the US small and medium-sized businesses (SMB) segment for Munich Re.

AM Best’s decision to place the ratings under review with positive implications reflects the anticipated synergies associated with Next Insurance, Inc.’s integration into Ergo Group AG.

However, the ratings will remain under review pending customary conditions, including necessary regulatory approvals, and until AM Best can thoroughly analyse Munich Re’s future plans for Next US.

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