Only a “select group” of reinsurers have the scale, diversity and financial strength to attract the highest-quality business, according to a Fitch report on Munich Re.

This strength is a key factor in Munich Re protecting its share of a soft market, amid the continuing entry of alternative capital, the ratings agency says.

Fitch has affirmed the reinsurer’s issuer financial strength and other ratings, reflecting strong and consistent earnings generation and capitalisation.

It notes Munich Re uses limited retrocession cover and its catastrophe risk is reasonable in the context of portfolio diversification and a strong capital position.