A.M. Best Affirms Ratings of Allianz Suisse Versicherungs and Allianz Suisse Lebensversicherungs.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength ratings of A (Excellent) of Allianz Suisse Versicherungs (ASV ASV abbr. Bible American Standard Version ASV n abbr (= American Standard Version) → traduction de la Bible ASV n abbr (Bible) (= ) (Switzerland) and Allianz Suisse Lebensversicherungs (ASL ASL - Algebraic Specification Language ) (Switzerland). The outlook for both ratings remains stable. The ratings reflect the companies' strategic importance to their ultimate parent, Allianz AG, their excellent business position in the Swiss market and stable capitalisation and operating performance. Excellent business position--A.M. Best believes that life business (47% of consolidated group premiums) will grow by a strong 5% due to the stable group business demand and increasing unit linked sales. Non-life direct premiums (49% of consolidated group premiums) are likely to continue to grow moderately at approximately 3% (as shown in 2004) on the basis of rate increases in motor and accident and healthcare business and the introduction in late 2004 of new products for liability and construction business. Inward reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. premiums are likely to decline as a result of the decrease in reinsurance rates and ASV's opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. strategy in the reinsurance market. Stable operating performance--A.M. Best expects group consolidated profits to continue improving following their 50% increase in 2004. Non-life combined ratio is likely to stabilise at around 100% (after the strong four percentage points improvement shown in 2004 to 101%) due to the rate increases. ASL's profits will deteriorate slightly after the 25 basis points increase in the group life's technical interest. This follows the more than doubling of life net profits reported in 2004. Stable capitalisation--Risk-adjusted capitalisation will remain strong as the moderate consolidated premium growth is compensated by increases in retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. and increases in soft capital elements. Consolidated capitalisation is unlikely to return to previous superior levels as the group depends heavily on group life business. A.M. Best believes that ASL's extraordinary capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. will be covered by ASV, should the need arise. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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