AM Best Affirms Credit Ratings of Allianz SE and Its Rated Subsidiaries

AMSTERDAM--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of ?aa? (Superior) of Allianz SE (Allianz) (Germany) and its rated subsidiaries. Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) on the outstanding rated debt instruments issued by Allianz, as well as on the outstanding rated debt instruments issued by Allianz Finance II B.V. and guaranteed by Allianz. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed list of companies and Long-Term IRs.)

The ratings reflect Allianz?s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favourable business profile and appropriate enterprise risk management (ERM).

AM Best expects the group?s risk-adjusted capitalisation, as measured by Best?s Capital Adequacy Ratio (BCAR), to remain at the strongest level for year-end 2022 and prospectively, supported by strong earnings generation and prudent capital management. The balance sheet strength assessment also benefits from the group?s robust asset-liability and liquidity management and prudent reserving practices. Financial leverage and coverage ratios are supportive of the balance sheet strength assessment and financial flexibility is considered excellent due to the group?s good access to capital markets.

Allianz?s operating performance is strong, demonstrated by a five-year weighted average return-on-equity (ROE) ratio of 10.1% and a non-life combined ratio of 95% (2017-2021), as calculated by AM Best. Allianz reported strong operating results in 2022 underpinned by good performance in its property/casualty segment, which benefited from strong rate increases, as well as robust operating profit generation in its life/health segment. The group?s asset management business continued to provide positive earnings, but showed a decline in profit as assets-under-management-driven revenues and performance fees reduced. AM Best expects the group?s technical performance to remain strong over the cycle, supported by excellent diversification, stringent underwriting discipline and effective expense management.

Allianz is one of the world?s largest insurance groups, with superior diversification by geography and business line, as well as leading positions in many developed and emerging markets, offering a complete range of life and non-life insurance products and asset management services. The organization?s competitive position is supported by its scale, strong management capabilities, dynamic strategy and strong brand.

The appropriate ERM assessment is underpinned by Allianz?s robust risk culture and developed ERM framework. The group?s risk controls and governance practices have been strengthened, following identified shortcomings related to the U.S. asset management function, after the resolution of the Structured Alpha matter.

The FSR of A+ (Superior) and the Long-Term ICRs of ?aa? (Superior) have been affirmed with stable outlooks for the following subsidiaries of Allianz SE:

• Allianz Global Corporate & Specialty Resseguros Brasil S.A.
• 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
• Euler Hermes North America Insurance Company (Allianz Trade)
• National Surety Corporation
• Chicago Insurance Company
• Fireman?s Fund Insurance Company?
• Fireman?s Fund Indemnity Corporation
• Interstate Fire & Casualty Company
• Allianz Life Insurance Company of North America
• Allianz Life Insurance Company of New York
• Allianz M?xico, S.A., Compa??a de Seguros

The following Long-Term IRs have been affirmed with stable outlooks:

Allianz Finance II B.V. (debt issues are guaranteed by Allianz SE)?
-- ?aa? (Superior) on EUR 750 million 3% senior unsecured bonds, due 2028
-- ?aa? (Superior) on GBP 750 million 4.5% senior unsecured bonds, due 2043

Allianz SE?
-- ?a+? (Excellent) on EUR 1.5 billion 4.75% perpetual subordinated bonds
-- ?a+? (Excellent) on EUR 1.5 billion 3.375% perpetual junior subordinated bonds

This press release relates to Credit Ratings that have been published on AM Best?s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best?s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best?s Credit Ratings. For information on the proper use of Best?s Credit Ratings, Best?s Performance Assessments, Best?s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best?s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright ? 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Source: AM Best