Best’s News & Research Service - March 31, 2015 03:20 PM (EDT)
A.M. Best Affirms Ratings of Allianz Global Corporate & Specialty Resseguros Brasil S.A.
Oldwick //BestWire// - A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a" of Allianz Global Corporate & Specialty Resseguros Brasil S.A. (AGCS Re Brazil) (Brazil). The outlook for both ratings is stable.
The ratings reflect AGCS Re Brazil's solid business plans, adequate risk-adjusted capital and an existing client base in the market that provides a balanced book of business. AGCS Re Brazil is licensed as a "local" reinsurance company in the Brazilian market. Its ratings are enhanced by its integration in Allianz Global Corporate & Specialty SE (AGCS SE), a strong international organization with a global matrix network, global knowledge including broad product offerings, global systems and best practices and the affiliation of AGCS SE with Allianz SE. In addition, the ratings also consider the vast financial capital and operational resources – including intellectual capital – that are provided through this affiliation.
Partially offsetting these positive rating attributes is the continued competition in the Brazil's (re)insurance market driven by the numerous companies that have entered in recent years. In addition, potential regulatory changes could negatively impact AGCS Re Brazil.
Rating factors that could lead to an upgrading of the ratings or a positive outlook would include sustained and stable operating profitability coupled with strong risk-adjusted capital. The ratings could also have positive momentum if there is additional parental support, whether it is implicit or explicit. Factors that could lead to a downgrading of the ratings or negative outlook include weakened risk-adjusted capital, volatile operating results, the inability of the company to meet the profitability targets outlined in its business plans or a reduction in support from its parent.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Evaluating Country Risk
- Risk Management and the Rating Process for Insurance Companies
- Understanding BCAR for Property/Casualty Insurers
- Understanding Universal BCAR
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center.
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