A.M. Best Europe – Rating Services Limited has commented on the recent announcement from Germany’s Allianz SE that it is entering into a long-term partnership with Turkey’s Yapi Kredi and is acquiring Yapi Kredi Sigorta. Allianz SE currently has a financial strength rating of ‘A+’ (Superior) and issuer credit rating of “aa-.”
Allianz SE’s announcement that it has reached an agreement to enter into a 15-year exclusive distribution agreement with Yapi Kredi and to acquire Yapi Kredi Sigorta, a property and casualty insurer, and its subsidiary, Yapý Kredi Emeklilik, which writes life and pension business “will give the group a market leading position in Turkey,” said Best
Best also said it believes that the “combination of Allianz SE’s local company, Allianz Turkey, with the newly acquired operations… will enhance Allianz SE’s business profile in a key strategic growth market.”
In addition Best noted that the total net consideration of €684 million [$877 million] “the acquisitions will not have a material impact on Allianz SE’s very strong risk-adjusted capitalization.”
Best added that it “will monitor developments with regards to these acquisitions and will consider them as part of its annual rating review of Allianz SE.”
Source: A.M. Best
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