Allianz AG & Units Rated AAA By S&P; Outlook Stable.LONDON--(BUSINESS WIRE)--S&P's CreditWire 11/6/98--Standard & Poor's today assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. its triple-'A' (extremely strong) counterparty Counterparty The other participant, including intermediaries, in a swap or contract. credit and financial strength ratings to core companies within the Allianz Allianz SE[1], (ISIN: DE0008404005; IPA pronunciation: [alli-anz], and formerly AG) is a large financial service provider headquartered in Munich, Germany. AG group. The counterparty credit and commercial paper ratings on Allianz of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. , Inc. have been raised to 'A-1'-plus from 'A-1'. Standard & Poor's also assigned its financial strength ratings to a number of other Allianz AG subsidiaries (see list below). The outlook is stable. The rating assignments for core companies reflect the extremely strong business position in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , extremely strong capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , and
strong profitability. Partially offsetting these strengths is the need
to respond to the rapidly changing global market.
Major Rating Factors:
-- Extremely strong business position in Europe: Allianz enjoys a
highly enviable position in the German life and nonlife markets.
It is quite clearly the market leader in both these lines of
business despite the recent wave of consolidation in Germany.
While the group's European market penetration was good, with
leading positions in Italy, Spain, Austria, and Ireland, it was
not truly a European powerhouse before its acquisition of AGF in
France. As a result of this acquisition, Allianz is very well
positioned to be a true European giant, with leading positions in
several key markets. However, to satisfy its ambition of being a
global commercial lines insurer, it needs to shore up its
positions in the U.S., the U.K., Asia, and Latin America.
Inevitably, this will lead to increased acquisition activity in
some of these markets. Allianz's experience of integrating AGF
into its operations will be highly useful should further
acquisitions occur.
-- Extremely strong capitalization: Allianz AG enjoys an
unparalleled capital position, on an adjusted basis, for an
organization its size. In addition to sound operating
fundamentals, capital growth has benefited from a number of
cross-shareholdings in several German financial institutions --
including Munich Re, Dresdner Bank, and Hypobank -- which have
appreciated exponentially since acquisition decades ago. The
group has been able to leverage its extremely strong
capitalization to build up its business position and grow its
earnings stream. While the level of capitalization is clearly a
strength, German investors are becoming more return conscious. As
a result, there could be future pressure to decapitalize the
group. Nonetheless, capital will continue to be a definite
strength to the rating over the foreseeable future.
-- Strong earnings profile: Operating performance is strong when
adjusted for positive run-off of reserves and some level of
realized capital gains are included. On a published basis, return
on equity is expected to increase to 15% in the medium term from
12.4% at year-end 1997. Standard & Poor's believes the group's
very strong profitability in Germany is clearly a strength.
Outside Germany, especially in the U.S., Switzerland, France, and
the U.K., operating performance is good, but not up to German
standards. The fundamental profitability of the overall
operations is sound, as evidenced by the combined ratio of about
100% on average over the past three years, despite difficult
market conditions.
-- Response to the rapidly changing global market environment: The
global competitive environment is changing drastically. Until
1994, Allianz's major market was a highly regulated one.
Allianz's market share declined steadily to 17% in 1995 from a
high of 22% in the 1970s. Management has aggressively worked to
stem the bleeding and stabilized its market share in 1995. Over
the past three years, market share has actually increased as the
group leveraged its size and used sophisticated underwriting
techniques. In the major industrial lines segment, market
conditions are becoming increasingly difficult. The market is
characterized by higher self-retention, increasing competition,
declining premium rates, and a move toward alternative
risk-transfer mechanisms. In addition, management will be
pressured to improve its position in the U.S., the U.K.,
Switzerland, and to a lesser extent, France. Standard & Poor's
believes the group is well positioned to compete in a volatile
market because of its range of expertise across markets.
Expectations:
-- Capitalization will continue to be extremely strong;
-- Premium volume will be flat, but market share will increase;
-- Earnings will continue to be strong, Standard & Poor's
said.--CreditWire
HOLDING COMPANY AND GROUP REINSURER re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. NEW RATINGS ASSIGNED Allianz AG Counterparty credit rating AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. Financial strength rating AAA GERMANY Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). NONLIFE NEW RATINGS ASSIGNED Allianz Versicherungs AG Counterparty credit rating AAA Financial strength rating AAA Frankfurter Vers. AG Counterparty credit rating AAA Financial strength rating AAA Bayerische Versicherungsbank AG Counterparty credit rating AAA Financial strength rating AAA Vereinte Versicherung AG Counterparty credit rating AAA Financial strength rating AAA Hermes Hermes, in Greek religion and mythology Hermes, in Greek religion and mythology, son of Zeus and Maia. His functions were many, but he was primarily the messenger of the gods, particularly of Zeus, and conductor of souls to Hades. Kreditversicherungs - AG Counterparty credit rating AA- Financial strength rating AA- GERMANY LIFE AND HEALTH NEW RATINGS ASSIGNED Allianz Lebensversicherungs AG Counterparty credit rating AAA Financial strength rating AAA Vereinte Lebensversicherung AG Counterparty credit rating AAA Financial strength rating AAA Vereinte Krankenversicherung AG Counterparty credit rating AAA Financial strength rating AAA FRANCE France (frăns, Fr. fräNs), officially French Republic, republic (2005 est. pop. 60,656,000), 211,207 sq mi (547,026 sq km), W Europe. LIFE AND NONLIFE RATINGS RAISED TO FROM Assurances Generales de France (AGF AGF Assurances Générales de France AGF Army Ground Forces AGF American Growth Fund (mutual fund) AGF American General Finance AGF Arbeitsgemeinschaft der Grossforschungseinrichtungen AGF Anatomic Gift Foundation AGF Assume Good Faith ) Counterparty credit rating A-1+ A-1 Assurances Generales de France VieAGF Vie) Counterparty credit rating AAA AA- Financial strength rating AAA AA- Assurances Generales de France Incendie Accidents Reassurances Transport (AGF IART IART Impact Area Review Team IART Intraatrial Reentrant Tachycardia IART Initial Access Response Time (IBM) IART Image-Guided Adaptive Radiation Therapy ) Counterparty credit rating AAA AA- Financial strength rating AAA AA- AGF Marine Aviation Transport (AGF-MAT) Financial strength rating AAA AA- Allianz Assurances S.A. Counterparty credit rating AAA AA- Financial strength rating AAA AA- AGF CASH (SNC SNC St Norbert College (De Pere, Wisconsin) SNC Sistema Nervioso Central SNC Société en Nom Collectif (French: Partnership) SNC Système Nerveux Central (French: central nervous system) )) Commercial paper/a A-1+ A-1 /a Guaranteed by Assurances Generales de France NEW RATINGS ASSIGNED Preservatrice Fonciere T.I.A.R.D. (PFA PFA Pacific Film Archive PFA Professional Footballers Association PFA Paraformaldehyde PFA Predictive Failure Analysis PFA Perfluoroalkoxy PFA Protection From Abuse PFA Parent-Faculty Association PFA Popular Flying Association TIARD) Counterparty credit rating AAA Financial strength rating AAA AUSTRIA Austria (ô`strēə), Ger. Österreich [eastern march], officially Republic of Austria, federal republic (2005 est. pop. 8,185,000), 32,374 sq mi (83,849 sq km), central Europe. LIFE AND NONLIFE NEW RATINGS ASSIGNED Allianz Elementar Versicherungs - AG Counterparty credit rating AAA Financial strength rating AAA Allianz Elementar Lebensversicherungs AG Counterparty credit rating AAA Financial strength rating AAA ITALY LIFE AND NONLIFE NEW RATINGS ASSIGNED R.A.S - Riunione Adriatica di Sicurta SpA (RAS (1) See network access server. (2) (Remote Access Service) A Windows NT/2000 Server feature that allows remote users access to the network from their Windows laptops or desktops via modem. See RRAS and network access server. ) Counterparty credit rating AAA Financial strength rating AAA Lloyd Adriatico SpA Counterparty credit rating A- Financial strength rating A- U.S. LIFE AND NONLIFE NEW RATINGS ASSIGNED Fireman's Fund Insurance Co. Counterparty credit rating AAA Financial strength rating AAA Fireman's Fund County Mutual Insurance Co. Financial strength rating AAA Fireman's Fund Insurance Co. of Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. Financial strength rating AAA Fireman's Fund Insurance Co. of Hawaii Inc. Financial strength rating AAA Fireman's Fund Insurance Co. of Ohio Counterparty credit rating AAA Financial strength rating AAA Fireman's Fund Insurance Co. of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. Financial strength rating AAA Fireman's Fund Insurance Co. of Missouri Missouri, state, United States Missouri (mĭz r`ē, –ə), one of the midwestern states of the United States. Financial strength rating AAA Fireman's Fund Insurance Co. of Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee Counterparty credit rating AAA Financial strength rating AAA American Automobile Insurance Co. Counterparty credit rating AAA Financial strength rating AAA Associated Indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. Corp. Counterparty credit rating AAA Financial strength rating AAA American Standard Lloyds Insurance Co. Financial strength rating AAA National Surety An individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person fails to act. surety n. Corp. Counterparty credit rating AAA Financial strength rating AAA American Insurance Co. Counterparty credit rating AAA Financial strength rating AAA Allianz Insurance Co. Counterparty credit rating AAA Financial strength rating AAA Allianz Underwriters Insurance Co. Counterparty credit rating AAA Financial strength rating AAA Jefferson Insurance Co. of NY Counterparty credit rating A+ Financial strength rating A+ Monticello Insurance Co. Counterparty credit rating A+ Financial strength rating A+ Allianz Life Insurance Co. 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. Counterparty credit rating AAA Financial strength rating AAA Preferred Life Insurance Co. of NY Counterparty credit rating AAA Financial strength rating AAA RATINGS RAISED TO FROM Allianz of America, Inc. Counterparty credit rating A-1+ A-1 Commercial paper A-1+ A-1 Allianz of America Finance Corp. Commercial paper/b A-1+ A-1 /b Guaranteed by Allianz of America, Inc. CANADA NEW RATINGS ASSIGNED Allianz Ins. Co. of Canada Counterparty credit rating AA- Financial strength rating AA- Trafalgar Insurance Co. Counterparty credit rating AA- Financial strength rating AA- U.K. NEW RATINGS ASSIGNED Cornhill Insurance PLC Counterparty credit rating AA Financial strength rating AA SWITZERLAND NEW RATINGS ASSIGNED Elvia Lebensversicherungs AG Counterparty credit rating AA- Financial strength rating AA- Elvia Schweizerische Vers.-Gesell. Counterparty credit rating AA- Financial strength rating AA- |
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