AM Best Affirms Credit Ratings of Allianz SE and Its Rated Subsidiaries

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” (Superior) of Allianz SE (Allianz) (Germany) and its rated subsidiaries. Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) on the outstanding rated debt instruments issued by Allianz, as well as on the outstanding rated debt instruments issued by Allianz Finance II B.V. and guaranteed by Allianz. The outlook for all of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and Long-Term IRs.)

The ratings reflect Allianz’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favourable business profile and appropriate enterprise risk management.

Allianz’s balance sheet strength is underpinned by risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level for year-end 2023 and prospectively, supported by strong earnings generation and prudent capital management. The balance sheet strength assessment also benefits from the group’s robust asset-liability and liquidity management and prudent reserving practices and factors in its financial leverage and coverage ratios. Financial flexibility is considered excellent due to the group’s proven access to capital markets.

Allianz’s strong operating performance assessment reflects its highly diversified earnings profile and a track record of relatively stable and robust income. Allianz reported strong operating results in 2023, underpinned by solid returns from its diversified income streams, stringent underwriting discipline and effective expense management. The group benefited from a strong performance of its life business segment, as well as robust returns in its property/casualty segment, which benefited from rate increases. The group’s asset management business continued to provide positive earnings, as net inflows recovered in 2023, and the cost investment ratio remained stable. AM Best expects the group’s technical performance to remain strong over the cycle.

Allianz is one of the world’s largest insurance groups, with superior diversification by geography and business lines, as well as leading positions in many developed and emerging markets, offering a complete range of life and non-life insurance solutions and asset management services. The organisation’s competitive position is supported by its scale, strong management capabilities, dynamic strategy and brand recognition.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa” (Superior) have been affirmed with stable outlooks for the following subsidiaries of Allianz SE:

• Allianz Global Corporate & Specialty Resseguros Brasil S.A.
• Allianz Global Corporate & Specialty SE
• Allianz S.p.A.
• Allianz Risk Transfer AG
• Allianz Risk Transfer (Bermuda) Limited
• AWP P&C S.A.
• Jefferson Insurance Company
• AWP Health & Life S.A.
• Allianz Global Risks US Insurance Company
• Allianz Underwriters Insurance Company
• AGCS Marine Insurance Company
• American Automobile Insurance Company
• Euler Hermes North America Insurance Company (Allianz Trade)
• National Surety Corporation
• Chicago Insurance Company
• Fireman’s Fund Insurance Company
• Fireman’s Fund Indemnity Corporation
• Interstate Fire & Casualty Company
• Allianz Life Insurance Company of North America
• Allianz Life Insurance Company of New York
• Allianz México, S.A., Compañía de Seguros

The following Long-Term IRs have been affirmed with stable outlooks:

Allianz Finance II B.V. (debt issues are guaranteed by Allianz SE)—

-- “aa” (Superior) on EUR 750 million 3% senior unsecured bonds, due 2028

-- “aa” (Superior) on GBP 750 million 4.5% senior unsecured bonds, due 2043

Allianz SE—

-- “a+” (Excellent) on EUR 1.5 billion 3.375% perpetual junior subordinated bonds

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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