A.M. Best Upgrades Issuer Credit Rating of Allianz Risk Transfer AG Business Wire LONDON -- December 14, 2012 A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating of A (Excellent) and upgraded the issuer credit rating to “a+” from “a” of Allianz Risk Transfer AG (ART) (Switzerland). The outlook assigned to both ratings is stable. The upgrade reflects ART’s strong risk-adjusted capitalisation and strategic importance to its intermediate parent, Allianz Global Corporate & Specialty AG (AGCS AG) and in turn to its ultimate parent Allianz Societas Europaea (Allianz SE) (Germany) as the group's alternative risk transfer unit. ART’s consolidated risk-adjusted capitalisation increased in 2011, precipitated by reduced underwriting risk following the termination of a large reinsurance contract, as well as increased retained earnings. Allowing for the dividend payment of CHF 178.0 million to AGCS AG, capitalisation is expected to remain strong in 2012 and into 2013. The company’s traditional portfolio is protected by an extensive reinsurance programme which encompasses a stop loss and an excess of loss agreement between ART and its intermediate parent, AGCS. Given the nature of some of the business underwritten, underwriting results are subject to some volatility. Nevertheless, this is mitigated by the company's solid risk management framework and extensive reinsurance programme on its traditional portfolio and low retention on its alternative risk transfer business. The company maintains a good business profile as the dedicated corporate risk transfer unit of the Allianz group. ART benefits from the implicit support of its ultimate parent, Allianz SE. The company is well integrated into its immediate parent, AGCS AG, in terms of business strategy and management. The ratings reflect both implicit support in the form of business integration as well as explicit support from AGCS AG in the form of reinsurance, including stop loss reinsurance. A positive change in the rating of Allianz SE could lead to positive rating actions on ART. Negative rating movements could occur if there were a material fall in the risk adjusted capitalisation and/or operating performance of ART. Furthermore, any deterioration in group support/weakening of the company’s strategic importance to its immediate and in turn ultimate parent, Allianz SE, could place downwards pressure on the ratings of ART. Any negative rating actions on Allianz SE could result in negative rating actions on ART. The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilised include: “Alternative Risk Transfer”; “Catastrophe Analysis in A.M. Best Ratings”; “Risk Management and the Rating Process for Insurance Companies”; “Rating Members of Insurance Groups”; “Understanding BCAR for Property/Casualty Insurers”; and “Understanding Universal BCAR”. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure. A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. Contact: Grace Panti-Amoa, +(44) 20 7397 0331 Financial Analyst firstname.lastname@example.org or Sam Dobbyn, +(44) 20 7397 0264 Associate Director, Analytics email@example.com or Rachelle Morrow, +1-908-439-2200, ext. 5378 Senior Manager, Public Relations firstname.lastname@example.org or Jim Peavy, +1-908-439-2200, ext. 5644 Assistant Vice President, Public Relations email@example.com
A.M. Best Upgrades Issuer Credit Rating of Allianz Risk Transfer AG
Press spacebar to pause and continue. Press esc to stop.