S&P Puts Allianz Subs on CreditWatch/Positive Following Consolidation Plan

Standard & Poor’s Ratings Services announced that it has “placed its ‘A-’ counterparty credit and insurer financial strength ratings on Germany-based property/casualty insurer Allianz Marine & Aviation Versicherungs AG (AMA G) and France-based property/casualty insurer Allianz Marine & Aviation (France) S.A. (AMA F) on CreditWatch with positive implications.

“The rating action follows Allianz AG’s (AZAG; AA-/Stable/A-1+) announced intention to merge the German-based group’s internal reinsurer for industrial business Allianz Global Risks (not rated) as well as the industrial business written by the German non-life operations of the Allianz group into AMA G. Allianz remains committed to industrial lines business, and 2006 renewals will be underwritten by AMA G.”

“The ratings on AMA G and AMA F currently contain one notch of support from Allianz,” stated S&P credit analyst Emmanuelle Cales. “If the restructuring is successful, Standard & Poor’s is likely to add more implicit support to AMA G and perhaps AMA F.”

S&P also said it “needs to determine whether the new AMA G, and industrial business in general, is core or strategically important to AZAG. The ratings on AMA G and AMA F could be raised by two or three notches.” The rating agency will “update the CreditWatch placement after discussions with management and remove the ratings from CreditWatch when the restructuring has taken place.”