A German financial services company and a majority of its subsidiaries have received a ratings upgrade from a global ratings agency.
A.M. Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) from “aa-” to “aa” and affirmed the Financial Strength Rating (FSR) of A+ (Superior) of Munich-based
Allianz SE and most its A.M. Best-rated subsidiaries.
The outlook of the Long-Term ICR has been revised from stable to positive, while the outlook of the FSR remains stable.
Browse specialty insurance products from Allianz here
In a statement, the global ratings agency said the upgrades are a reflection of the firm's strong financial performance and excellent level of risk-adjusted capitalisation, “despite adverse economic conditions in recent years,” as well as the actions taken by the group in response to disruptive innovation and prolonged low interest which it said “should support Allianz’s competitive position going forward.”
A.M. Best said it expects Allianz's excellent risk-adjusted capitalisation to remain at a similar level over the comings years, with strong earnings retention likely to offset the additional capital requirements caused by business growth. The group's significant capital buffers are also expected to absorb market movements that might threaten its solvency.
The group also boasts of a long track record of strong underwriting and overall results that have been supported by its diversified earnings profile. Allianz's core operating units performed well in 2016, except for a small number of its operating units. Also boosting the group's earnings profile is its profitable asset management operations.
The following are the subsidiaries that got an “aa” Long-Term ICR upgrade and A+ FSR affirmation:
· Allianz Global Corporate & Specialty SE
· Allianz S.p.A.
· Allianz Risk Transfer AG
· Allianz Risk Transfer (Bermuda) Limited
· AWP P&C S.A.
· Jefferson Insurance Company
· AWP Health & Life S.A.
· Allianz Global Risks US Insurance Company
· Allianz Underwriters Insurance Company
·
AGCS Marine Insurance Company
· American Automobile Insurance Company
· National Surety Corporation
· The American Insurance Company
· Associated Indemnity Corporation
· Chicago Insurance Company
· Fireman’s Fund Insurance Company
· Fireman’s Fund Indemnity Corporation
· Fireman’s Fund Insurance Company of Hawaii, Inc.
· Interstate Fire & Casualty Company
· Allianz Life Insurance Company of North America
· Allianz Life Insurance Company of New York
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