Allianz Best's Rating Unaffected By Plan To Acquire Pimco Advisors.

OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 3, 1999--

A.M. Best's A++ (Superior) group rating on Allianz AG, Munich, is not affected by the German company's recent announcement that it plans to acquire 70% ownership interest in Pimco Advisors L.P. for $3.3 billion.

The transaction--which is subject to regulatory approvals and is expected to close in March 2000--will enhance the Allianz Group's asset-management capabilities in the fixed-income sector and position Allianz among the top 10 global asset managers. It also will give Allianz an immediate and strong presence in the U.S. market, as Newport Beach, Calif.-based Pimco is the third-largest publicly traded investment manager in the United States. The new structure also will benefit Pimco by increasing its global distribution capability.

Both companies have agreed to incentive packages to ensure the continuity of the key executives and fund managers at Pimco for five to seven years.

A.M. Best has reviewed the financing for the acquisition and expects that it will be funded to a large extent by new debt. A.M. Best has determined that the debt is well within the acceptable range for the company's A++ group rating.

A.M. Best Co., established in 1899, is the world's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.