SEPTEMBER 10, 2020 11:49 AM (EDT)

AM Best Affirms Credit Ratings of Allianz México, S.A., Compañía de Seguros


CONTACTS:
 Olga Rubo, FRM
Financial Analyst
+52 55 1102 2720, ext. 134
olga.rubo@ambest.com

Alfonso Novelo
Senior Director, Analytics
+52 55 1102 2720, ext. 107 alfonso.novelo@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

MEXICO CITY - SEPTEMBER 10, 2020 11:49 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A+ (Superior), the Long-Term Issuer Credit Rating of “aa”, and the Mexico National Scale Rating of “aaa.MX” of Allianz México, S.A., Compañía de Seguros (Allianz Mexico) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Allianz Mexico’s strategic importance as a subsidiary of Allianz SE (Allianz), which on a consolidated basis has a balance sheet strength that AM Best categorizes as strongest, as well as strong operating performance, very favorable business profile and very strong enterprise risk management.

Allianz is one of the world’s largest insurance groups, with superior diversification by geography and business line, and leading positions in many developed and emerging markets, offering a complete range of life and non-life insurance products, as well as asset management services. Its competitive position is supported by its scale, strong management capabilities, dynamic strategy and strong brand.

Allianz Mexico specializes in offering insurance coverages across a broad spectrum of categories in life, property/casualty, and accident and health. It is focused solely on Mexico’s market, and the insurance portfolio, as of December 2019, was composed of life (52%), property/casualty (33%) and accident and health (15%). The company operates life administration funds in its life business segment, consisting mainly of investment and savings products.

Allianz Mexico forms part of the IberoLatAm division of Allianz, and is identified by the group as one of the key regions of future insurance growth outside its core European markets. Allianz Mexico also is integrated in all core processes of the group, as well as in the ongoing strategic initiatives.

Operating performance is characterized by positive bottom-line results, derived from the company’s well-diversified business portfolio, and financial flexibility in terms of size, capital and reinsurance use. Underwriting practices are sound, and further benefit from the synergies provided by the group through the rest of its financial entities, which has enabled the company to contain operating expenses.

The group’s consolidated risk-adjusted capitalization remains at the strongest level, as measured by Best Capital Adequacy Ratio (BCAR), which fosters underwriting growth and provides financial flexibility. The company also is supported by an appropriate reinsurance program, placed mainly with Allianz, and has an adequate liquidity profile.

If there are positive rating actions on the main operating subsidiaries of Allianz, as a result of a sustained improvement of operating performance, the ratings of Allianz Mexico likely would move in tandem. Likewise, if there are negative rating actions on the main operating subsidiaries of Allianz, as a result of weakening in risk-adjusted capitalization below the level required for the strongest BCAR assessment, or a sustained deterioration of operating performance, the ratings of Allianz Mexico would mirror those same actions. A change in AM Best’s perception regarding the strategic importance of Allianz Mexico to the group also could impact Allianz Mexico’s ratings.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of AM Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:


  • Understanding Universal BCAR (Version June 11, 2020)

  • Catastrophe Analysis in AM Best Ratings (Version Oct. 13, 2017)

  • Available Capital & Holding Company Analysis (Version Oct. 13, 2017)

  • Scoring and Assessing Innovation (Version Mar 05, 2020)

  • AM Best’s Ratings On a National Scale (Version Oct. 13, 2017)

  • Evaluating Country Risk (Version Oct. 13, 2017)

View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best’s Credit Ratings.


  • Previous Rating Date: August 21, 2020

  • Date Range of Financial Data Used: Dec. 31, 2013-Dec. 31, 2019

This press release relates to rating(s) that have been published on AM Best’s website. For additional rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page.

AM Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

AM Best’s credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

AM Best receives compensation for interactive rating services provided to organizations that it rates. AM Best may also receive compensation from rated entities for non-rating related services or products offered by AM Best. AM Best does not offer consulting or advisory services. For more information regarding AM Best’s rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the AM Best Code of Conduct. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.


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