AM Best revises issuer credit ratings for Allianz SE and subsidiaries

The company’s 2015 combined ratio and return on equity performed favourably compared to its ten-year averages

Insurance News

By Gabriel Olano

AM Best has issued new ratings for Allianz SE of Germany and most of its rated subsidiaries. The issuer credit rating (ICR) outlook was revised from stable to positive, while financial strength rating (FSR) of A+ (Superior) and ICR of “aa-” was affirmed.
The international credit ratings firm cited Allianz SE’s excellent risk-adjusted capitalisation, strong operating performance, diversified business profile, and robust risk management framework as positive factors for its rating. However, these are tempered by Allianz’s exposure to volatile investment markets. The Group plans to revamp the mix of new life business written, reduce sensitivity to credit spreads, digitalizing its underwriting platforms, developing a customer-centric model, and improving underwriting performance. If it is able to achieve these goals in the next couple of years, then a ratings upgrade is likely.
Best’s Capital Adequacy Ratio (BCAR) indicates that Allianz’s risk-adjusted capitalization remains stable at an excellent level. While exposure to market risk exposes the group’s solvency to volatility, this is offset by adequate capital that can absorb market movements.
For 2015, Allianz reported a combined ratio of 94.6% for its property and casualty business, and a return on equity of 10.8%. These compare well to its ten-year weighted averages. 
The above ratings also apply to the following Allianz subsidiaries:
• Allianz Global Corporate & Specialty SE
• Allianz S.p.A.
• Allianz Risk Transfer AG
• Allianz Risk Transfer (Bermuda) Limited
• 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.
• Fireman's Fund Insurance Company of Ohio
• Interstate Fire & Casualty Company
• Allianz Life Insurance Company of North America
• Allianz Life Insurance Company of New York

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