AM Best Affirms Credit Ratings of Allianz SE and Rated Subsidiaries.
ENPNewswire-October 11, 2021--AM Best Affirms Credit Ratings of Allianz SE and Rated Subsidiaries
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Release date- 09102021 - 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 (see below for the list of the companies).
The outlook of these Credit Ratings (ratings) is stable.
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 very strong enterprise risk management (ERM).
AM Best expects Allianz's consolidated risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), to be maintained at the strongest level, underpinned by strong earnings generation and a prudent capital management approach. 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 has a track record of strong and stable operating performance, supported by its diversified earnings profile. The group has produced a five-year weighted average return-on-equity ratio of 10.5% (2016-2020) (as calculated by AM Best). Its property/casualty segment has demonstrated consistently strong performance, reporting a five-year average combined ratio of 95.1%, supported by strong group-wide pricing capabilities. The group reported a combined ratio of 93.4% at half-year 2021 (year-end 2020: 96.3%). The improvement was largely driven by the absence of adverse effects from the COVID-19 pandemic and a higher reserve run-off ratio. The life/health segment's operating profit has a five-year compound annual growth rate of 1.9%, reaching EUR 4.4 billion in 2020 despite a declining investment margin driven by the low interest rate environment. The group's profitable and scalable asset management business continues to provide a good additional source of income (25% of the group's operating profit in 2020).
Allianz is one of the world's largest insurance groups, with superior diversification by geography and business line, and leading positions in many developed and emerging markets, offering a complete range of life and non-life insurance products, as well as asset management services. Its competitive position...
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