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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 11, 2017 03:05 PM (EST)
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Allianz Global Corporate & Specialty Resseguros Brasil S.A. (AGCS Re Brazil) (Brazil). The outlook of these Credit Ratings (ratings) is stable.
The rating affirmations reflect the benefits AGCS Re Brazil derives from its integration into Allianz Global Corporate & Specialty Group (AGCS Group), a strong global organization with an international matrix network, global expertise including broad product offerings, global systems and best practices, and the affiliation of AGCS Group with Allianz SE. The ratings also reflect AGCS Re Brazil’s adequate risk-adjusted capitalization, diversified book of business and solid business plan. In addition, the ratings also consider the vast financial capital and operational resources – including intellectual capital – that are provided through this affiliation. These positive rating attributes are partially offset by the highly competitive (re)insurance market in Brazil along with challenging macroeconomic and political conditions.
Factors that could have a positive impact on the ratings are a sustained and stable profitability, a strengthening of the risk-adjusted capitalization or an additional enhancement from AGCS Re Brazil’s ultimate parent. Factors that could have a negative impact on the ratings include the lack of support from the parent organization, a sustained material volatility in the operating performance or deterioration in the risk-adjusted capitalization. Other factors that could potentially have a negative impact on the ratings are the inability of the company to meet its profitability targets or a downgrade of Brazil’s country risk tier.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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