Allianz has ‘superior’ rating affirmed
AM Best has affirmed the financial strength rating of A+ (superior) of Allianz SE (Germany) and 22 of its rated subsidiaries, including Allianz Risk Transfer (Bermuda). Allianz SE had provisioned EUR3.7 billion at the end of 2021 and EUR1.9 billion at the end of the first quarter 2022, the ratings agency said.
The ratings reflect Allianz SE’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favourable business profile and appropriate ERM.
Allianz Global Investors US, a subsidiary of Allianz SE, announced last month that it had entered into settlements with the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) relating to criminal securities fraud. AM Best said the settlement agreements highlighted deficiencies in the effectiveness of internal control measures and governance within AGI US, and has therefore revised Allianz SE’s enterprise risk management assessment to ‘appropriate’ from the previous assessment of ‘very strong’.
The settlement agreements with the DOJ and SEC are expected to lead to total payments of about $6 billion and resolved uncertainty regarding the financial impact of this matter on the group, AM Best said.
AM Best expects the group to continue to benefit from strong earnings from its diverse operations, including its asset management units.
