A.M. Best has affirmed the financial strength rating of ‘A+’ (Superior) and the issuer credit ratings of “aa-” of Allianz Global Risk US Insurance Company, Allianz Underwriters Insurance Company and AGCS Marine Insurance Company (collectively referred to AGCS NA). The outlook for all of the ratings is stable. All the above companies are domiciled in Illinois.
Best said the “ratings reflect AGCS NA’s strong business franchise, solid operating performance and supportive level of risk-adjusted capitalization. In addition, the ratings reflect AGCS NA’s strategic importance as an industrial and specialty lines insurance provider within the global operations of its ultimate parent, Allianz Societas Europaea (Allianz SE). Furthermore, the ratings reflect the implicit support provided by Allianz SE.
As partial offsetting factors Best noted the “underwriting losses experienced by AGCS NA in several recent years driven by fire, weather-related and aviation events. Moreover, a significant decline in AGCS NA’s surplus was experienced in 2012, due to the transfer of its equity ownership of Fireman’s Fund Insurance Company (Novato, CA) to Allianz of America, Inc. (Delaware). Despite these offsetting factors, the stable outlook reflects the support AGCS NA receives from Allianz SE and Best’s expectation of improved operating results over the near term.”
In conclusion Best said “positive rating actions may occur if AGCS NA outperforms its peers over an extended period of time.
“However, negative rating actions could occur if a considerable decline in risk-adjusted capitalization is experienced, operating performance falls below A.M. Best’s expectation or the strategic importance of AGCS NA to Allianz SE is reduced.”
Source: A.M. Best