S&P affirms AGCS’s AA

Christopher Munro

THE STRONG position of Allianz Global Corporate & Specialty (AGCS) within its parent’s structure has allowed Standard & Poor’s (S&P) to reaffirm its financial strength rating of AA (stable). AGCS’s capitalisation is good “owing to its extremely strong capital adequacy and adequate reserving”. It added: “We believe [ Allianz] is committed to maintaining AGCS’s capitalisation at a level commensurate with our expectations for a core operation and to support AGCS financially if necessary.” The affirmation also applies to AGCS AG, AGCS France and Allianz Global Risks US Insurance Co, while the AA (negative) rating for its subsidiary Allianz Fire and Marine Insurance Japan is also based on AGCS’s rating, but held back by the sovereign credit rating of Japan. AGCS’s well-diversified business portfolio, selective underwriting policy and efficiency improvements “should contribute to sustainably positive underwriting results”, S&P said. According to S&P, AGCS has a strong position in Europe, while the company is developing in the US through diversifications.