A.M. Best Upgrades Ratings of Allianz Global Corporate & Specialty AG.OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) 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. ) to "a+" from "a-" of Allianz Global Corporate & Specialty AG (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) ) (Germany), formerly known as Allianz Marine & Aviation Versicherungs Aktiengesellschaft. The outlook for both ratings is stable. AGCS is the result of the incorporation of Allianz Global Risks RE-ckversicherungs-Aktiengesellschaft (AGR AGR advanced gas-cooled reactor ) and the transfer of the industrial portfolio of Allianz Versicherungs AG (AV) into Allianz Marine & Aviation Versicherungs Aktiengesellschaft (AMAV). The ratings reflect the enhancement received from the implicit support of its ultimate parent, Allianz Aktiengesellschaft (Allianz). Other rating factors include the company's excellent consolidated risk-adjusted capitalisation, strong prospective operating performance and excellent business profile. Excellent consolidated risk-adjusted capitalizationCoA.M. Best believes that the risk-adjusted capitalization for the new entity is excellent. The company benefits from a profit and loss transfer agreement with Allianz which protects the balance sheet as any loss will be paid off by the parent company. A.M. Best believes that Allianz would provide capital if necessary and the newly formed entity retains the capacity to build up funds through the use of the 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. Strong prospective operating performanceCoA.M. Best expects AGCS's prospective operating performance to be strong. 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. results for the combined entity are likely to be positive in 2006 with an anticipated combined ratio of approximately 97% as the company has implemented stricter risk management procedures and reduced its exposure to U.S. catastrophe risks following the significant exposure to the US hurricanes, in particular in 2005 at AMAV. A.M. Best believes that the company still benefits from favourable premium rates in most of the business lines written, although A.M. Best anticipates moderate softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. is likely to emerge in the 2007 renewal. Excellent business positionCoA.M. Best believes AGCS has an excellent business profile as one of the leading global industrial insurers and specialty risks writers. The company is Allianz's dedicated subsidiary for marine and aviation business (previously written by AMAV) and industrial risks (previously written by AGR and AV). A.M. Best believes the company has a diversified portfolio, both by business line and geographically, which is likely to increase Allianz's visibility in this segment. The company is expected to write gross written premiums of approximately 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. 2.2 billion (USD USD In currencies, this is the abbreviation for the U.S. Dollar. 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. 2.75 billion) in 2006 (on a pro-forma basis the company wrote EUR 2.4 billion [USD 3 billion] in 2005). 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 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 www.ambest.com. |
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