A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) and issuer credit rating of “aa” of Allianz Insurance plc (AZI) (United Kingdom). The outlook for both ratings is stable.
AZI’s stand-alone risk-adjusted capitalisation is expected to remain excellent during 2008 and 2009, despite the likely payment of dividends to its parent company, Allianz Societas Europaea (Allianz SE) (Germany). The ratings also continue to factor the significant financial flexibility that AZI derives from Allianz SE’s access to capital markets and from reinsurance support provided by Allianz group subsidiaries.
A.M. Best expects AZI to maintain a solid combined ratio in 2008 of between 95% and 100% (2007: 97.5%), despite further anticipated rate weakening for its major commercial lines of business. Performance is likely to be supported by releases from prior year reserves (2007: GBP 178 million [USD 351 million]) and less severe catastrophe experience compared to 2007, which was affected by U.K. flood losses.
AZI is the dedicated general insurance operation of Allianz SE in the U.K. market, where it maintains an excellent business profile as a leading provider of commercial and personal lines business. In 2008, AZI is likely to strengthen its control of distribution through the further development of its Premierline and Home and Legacy products, which are sold directly to policyholders.
For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
Contacts:
Analysts
Stephen Mullan, +(44) 20 7626
6264
stephen.mullan@ambest.com
or
Catherine
Thomas, +(44) 20 7626 6264
catherine.thomas@ambest.com
or
Public
Relations
Jim Peavy, +(1) 908 439 2200, ext. 5644
james.peavy@ambest.com
or
Rachelle
Morrow, +(1) 908 439 2200, ext. 5378
rachelle.morrow@ambest.com
