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FOR IMMEDIATE RELEASE
AMSTERDAM - MARCH 22, 2024 11:47 AM (EDT)
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 for all of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the 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.
Allianz’s balance sheet strength is underpinned by risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level for year-end 2023 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 and factors in its financial leverage and coverage ratios. Financial flexibility is considered excellent due to the group’s proven access to capital markets.
Allianz’s strong operating performance assessment reflects its highly diversified earnings profile and a track record of relatively stable and robust income. Allianz reported strong operating results in 2023, underpinned by solid returns from its diversified income streams, stringent underwriting discipline and effective expense management. The group benefited from a strong performance of its life business segment, as well as robust returns in its property/casualty segment, which benefited from rate increases. The group’s asset management business continued to provide positive earnings, as net inflows recovered in 2023, and the cost investment ratio remained stable. AM Best expects the group’s technical performance to remain strong over the cycle.
Allianz is one of the world’s largest insurance groups, with superior diversification by geography and business lines, as well as leading positions in many developed and emerging markets, offering a complete range of life and non-life insurance solutions and asset management services. The organisation’s competitive position is supported by its scale, strong management capabilities, dynamic strategy and brand recognition.
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: