A.M. Best Affirms Ratings of Allianz Global Risks US Insurance Company and Its Subsidiaries

  A.M. Best Affirms Ratings of Allianz Global Risks US Insurance Company and
  Its Subsidiaries

Business Wire

OLDWICK, N.J. -- July 10, 2013

A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) and
issuer credit ratings of “aa-” of Allianz Global Risk US Insurance Company,
Allianz Underwriters Insurance Company and AGCS Marine Insurance Company
(AGCS) (collectively referred to as AGCS NA) (Chicago, IL). The outlook for
all ratings is stable.

The ratings reflect AGCS NA’s supportive level of risk-adjusted
capitalization, strong business franchise and solid operating performance. The
ratings also reflect AGCS NA’s strategic importance to AGCS’s global
industrial and specialty lines operations and the implicit support of the
organization’s ultimate parent, Allianz Societas Europaea (Allianz SE)

Offsetting these positive rating factors are the underwriting losses
experienced by AGCS NA in several recent years, driven by significant
aviation, fire and weather-related events. Furthermore, AGCS NA reported a
decline in surplus in 2012, due to the transfer of equity ownership of
Fireman’s Fund Insurance Company (Novato, CA) to Allianz of America Inc.
(Delaware) from AGCS NA. Despite these offsetting considerations, the stable
outlook reflects the ongoing support from Allianz SE and A.M. Best’s
expectation of continued favorable operating profits over the near term.

Future positive rating actions may result if AGCS NA outperforms its peers
over an extended period. However, negative rating actions could result if
operating performance falls markedly short of A.M. Best’s expectation, if
there is a considerable deterioration in risk-adjusted capitalization or if
there is a reduction in AGCS NA’s strategic importance to Allianz SE.

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. Best’s Credit Rating Methodology can be found at

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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


A.M. Best Co.
Adrienne Tortoriello, 908-439-2200, ext. 5088
Senior Financial Analyst
Jennifer Marshall, 908-439-2200, ext. 5327
Managing Senior Financial Analyst
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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