A.M. Best Affirms Ratings of Allianz Life.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 (Excellent) and the issuer credit ratings (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 "a+" of Allianz Life Insurance Company of 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. (Minneapolis, MN) and its subsidiary, Allianz Life Insurance Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (New York, NY) (collectively known as Allianz Life). The outlook for all ratings is stable. These ratings reflect the strategic role Allianz Life has within Allianz SE (Allianz) (Germany), its leading presence in the U.S. fixed-indexed annuity market and its well managed risk management practices. A.M. Best also notes the breadth of experience among Allianz Life's newly restructured management team. However, Allianz Life's business profile consists of a highly concentrated portfolio of fixed and variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. products with annuity premiums representing over 90% of gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. . The concentration risk in the annuity segments exposes Allianz Life to interest rate and equity market risks due to the interest sensitive nature of these products, which also places Allianz Life in a less favorable position Noun 1. favorable position - the quality of being at a competitive advantage favourable position, superiority advantage, vantage - the quality of having a superior or more favorable position; "the experience gave him the advantage over me" when compared to more diversified insurers. Partially offsetting these rating factors is the company's effective hedging strategies, coupled with the integrated risk management practices employed by Allianz on a global basis. Allianz Life's risk-adjusted capital position has been stressed for several years due to surplus strain associated with the continued expansion of its annuity operations. A.M. Best notes that the recent decline of new premiums in the indexed annuity segment may reduce surplus strain, which may improve Allianz Life's risk-adjusted capital position. Furthermore, Allianz has recently provided a $150 million cash infusion in an effort to bolster the capitalization of Allianz Life. The company has consistently recorded favorable net income on a statutory basis for several years. 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. |
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