AM Best


A.M. Best Affirms Ratings of Allianz Life Insurance Company of North America and Allianz Life Insurance Company of New York


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Colleene Parodi
Senior Financial Analyst
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colleene.parodi@ambest.com

Rosemarie Mirabella
Assistant Vice President
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rosemarie.mirabella@ambest.com


Christopher Sharkey
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Jim Peavy
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(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - JULY 18, 2014 08:49 AM (EDT)
A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit ratings of "a+" of Allianz Life Insurance Company of North America (Minneapolis, MN) and its subsidiary, Allianz Life Insurance Company of New York (New York, NY) (collectively known as Allianz Life). The outlook for all ratings is stable.

The ratings reflect Allianz Life's strategic position under its ultimate parent, Allianz Societas Europaea (Allianz SE) (Germany), its leading U.S. market position within the fixed index annuity market, solid risk-based capital position, well-developed enterprise risk management framework and the recent improvement in its operating results. The ratings also recognize Allianz Life's unlevered U.S. balance sheet with no financial leverage and limited use of operating leverage. Additionally, the ratings recognize Allianz SE's global business profile as a leading financial services company and the diversification benefits provided by its core business segments within life/health, property/casualty and asset management sectors.

These positive rating factors are partially offset by Allianz Life's limited business profile, which demonstrates a significant concentration in fixed and variable annuity products and increasing levels of competition within the United States from new entrants to the fixed index annuity marketplace. Allianz Life's operating profile remains significantly correlated to interest rate and equity market risks with continued pressure on investment spreads due to low interest rates. Additionally, the ratings reflect a higher level of mortgage loans to capital and continued poor operating performance in the organization's legacy variable annuity block.

Positive rating actions could occur for Allianz Life with increased profitable diversification in its business profile resulting in higher strategic importance of its contribution to Allianz SE. However, negative rating actions could occur if there were a considerable decline in the organization's risk-adjusted capital or operating earnings, a reduction in A.M. Best's view of the strategic importance of the group to Allianz SE and/or deterioration in the financial strength of Allianz SE.

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.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.


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