The German private insurance industry is an important completion to the German public health insurance, providing high level health services. There is an intense competition among the private players with respect to products and premiums. From a customer's point of view there are two important requirements when choosing a health insurer. First, the health insurer should be financially stable to be able to provide competitive products and services in future. Second, premium increases should be limited. In the RealRate approach both these aspects are covered by the Economic Capital Ratio. Insurance brokers, advising their customers on the choice of the health insurer are required to compare health insurers before giving advice. Our ranking provides such an independent benchmark analysis.

Measuring Financial Health.

To quantify a health insurer's financial health we use the Economic Capital Ratio. It is simply the company's available capital divided by its assets. This ratio enables us to rank and compare insurers of different size. Indeed, it is not the size that matters, but whether the insurer has the financial means to be resilient in adverse situations. Computing the economic capital of a health insurer is the core of RealRate's computational model. Picking the most important information from the annual business reports, we transform those accounting values to economic market values. This approach is especially important for German health insurers since their statutory accounting relies on book values often being quite different from fair market values. In addition, their business model and corresponding accounting is difficult and deviates from other industries. The Economic Capital Ratio is a forward-looking key ratio capturing financial strength in just one figure.

The strongest German private health insurer in 2021 is Envivas, having an Economic Capital Ratio of more than 28%. Its strongest advantage compared to the market average of all other private health insurers is a high level of future profits resulting from above average technical profits. In addition, their technical reserves are prudent yielding future gains. Just closely behind is DEVK with a similar profile and in addition being equipped with high own capital in the statutory balance sheet. Third is Provinzial. These companies, as well as the other Top Rated health insurers are expected to be highly profitable in future and thus being a good choice by customers and brokers.

1. ENVIVAS Kranken

2. DEVK Kranken

5. ERGO Kranken

6. R+V Kranken

14. uniVersa Kranken

18. ARAG Kranken

21. INTER Kranken

22. LVM Kranken

23. AXA Kranken

25. UNION Kranken

27. Debeka Kranken

29. Gothaer Kranken

30. Allianz Kranken

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