A.M. Best Affirms Ratings of Allianz Global Corporate & Specialty AG.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A+ (Superior) and the issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "aa" of Allianz Global Corporate & Specialty AG (Germany) (AGCS AGCS Accord General sur le Commerce des Services (French: General Agreement on Trade in Services) AGCS Antarctica and the Global Climate System AGCS Association of Golf Club Secretaries (UK) AG). At the same time, A.M. Best has affirmed the FSR of A+ (Superior) and the ICRs of "aa" of Allianz Global Corporate & Specialty (France) (AGCS France) and Allianz Global Corporate & Specialty North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. (Burbank, CA) (AGCS NA). The outlook on all ratings remains stable. The ratings reflect A.M. Best's view that AGCS AG, AGCS France and AGCS NA are an integral part of their ultimate parent company, Allianz Societas Europaea's (Germany) (Allianz SE) strategy. The AGCS companies contribute a significant part of the consolidated non-life gross premium income of Allianz SE and the companies are the group's primary risk carriers for corporate and specialty risks. Support from Allianz SE is underpinned by a profit and loss absorption agreement provided to AGCS AG. The ratings of AGCS France and AGCS NA reflect the operational integration of these companies into AGCS AG's global processes and management structure. The stand alone risk-adjusted capitalisation of AGCS AG is likely to remain strong in 2009, underpinned by significant equalisation Noun 1. equalisation - the act of making equal or uniform equalization, leveling human action, human activity, act, deed - something that people do or cause to happen reserves. AGCS AG's profit and loss absorption agreement requires Allianz SE to meet any net losses incurred at AGCS AG under German GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . However, the agreement also requires AGCS AG to upstream all net income to the parent company thereby limiting the accumulation of capital via earnings retention. A.M. Best expects a resilient underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. result from AGCS AG in 2009, despite a marginal anticipated deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the company's combined ratio from 83.6% in 2008 and a likely decline in investment income. As a result of these factors, A.M. Best expects AGCS AG's 2009 income before tax and before equalisation reserves to decline to the range EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 300 million to EUR 320 million in 2009 from EUR 341 million in 2008. The recession has affected the claims environment in 2009, drawing a close to the favourable claims experience that supported performance in 2008. In A.M. Best's view, AGCS AG's excellent business profile in global industrial lines and specialty lines markets supports its broadly diversified underwriting portfolio. A.M. Best expects AGCS AG's gross premium income to increase slightly from EUR 2.2 billion in 2008, primarily due to portfolio transfers, although partly offset by a decrease in business ceded from other Allianz SE group companies. For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. 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. |
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