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Best’s News & Research Service - March 22, 2024 11:53 AM (EDT)

AM Best Affirms Credit Ratings of Allianz Global Corporate & Specialty Resseguros Brasil S.A.

  • March 22, 2024 11:53 AM (EDT)
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//BestWire// - AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa” (Superior), of Allianz Global Corporate & Specialty Resseguros Brasil S.A. (AGCS Re Brazil) (São Paulo, Brazil). The outlook of these Credit Ratings (ratings) is stable.

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

The stable outlooks are underpinned by AM Best’s expectation that risk-adjusted capitalization will remain at the strongest level as measured by Best’s Capital Adequacy Ratio (BCAR), supported by conservative capital management and excellent financial flexibility. The group is expected to remain one of the leaders in the global insurance market and continue to demonstrate stable and strong operating performance, supported by superior diversification by line of business and geography, as well as continued technical discipline.

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

AGCS Re Brazil’s operations and management, which are fully integrated with Allianz, have demonstrated a track record of supporting the group’s strategy, providing access to the Brazilian reinsurance market as a local reinsurer. The group’s competitive advantages include the opportunity of expansion in Latin America by serving as a regional hub and the exploitation of commercial and operational opportunities, as well as synergies with Allianz’s retail entities in Brazil, Argentina, Colombia and México. The company specializes in offering reinsurance coverages across a broad spectrum of categories in life and property/casualty.

Operating performance is characterized by consistently positive bottom-line results, derived from the company’s well-diversified business portfolio. Underwriting practices are sound, and benefit from the synergies provided by the group through the rest of Allianz’s financial entities, which have enabled AGCS Re Brazil to contain operating expenses.

AM Best expects the group’s risk-adjusted capitalization, as measured by BCAR, to continue to be supported by the intragroup excess of loss reinsurance contracts and its stop loss agreement. AGCS Brazil’s operations are clearly identified as part of the wider Allianz group and the Allianz Global Corporate & Specialty segment.

If there are negative rating actions on the main operating subsidiaries of Allianz, as a result of weakening in risk-adjusted capitalization, or a sustained deterioration of operating performance, the ratings of AGCS Re Brazil would mirror those same actions. Positive rating actions are unlikely in the near term. Over a longer term, positive rating actions could arise if Allianz outperforms its peers in terms of operating results for an extended period of time and demonstrates strengthening of its key rating fundamentals to a standard commensurate with a higher rating level. A change in AM Best’s perception regarding the strategic importance of AGCS Re Brazil to the group also could impact the company’s ratings.

The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Jan. 18, 2024), 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

Key insurance criteria reports utilized:

  • Understanding Global BCAR (Version Mar. 07, 2024)

  • Catastrophe Analysis in AM Best Ratings (Version Feb. 08, 2024)

  • Available Capital & Insurance Holding Company Analysis (Version Jan. 18, 2024)

  • AM Best’s National Scale Ratings (Version June 15, 2023)

  • Scoring and Assessing Innovation (Version Feb. 27, 2023)

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, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best’s Credit Ratings.

  • Previous Rating Date: Mar. 08, 2023

  • Initial Rating Date: Mar. 27, 2014

  • Date Range of Financial Data Used: Dec. 31, 2017-Dec. 31, 2023.

  • Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

    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.

    If the ratings referred in this press release do not indicate a specific country suffix, it is understood that they are granted globally and not on a national scale.

    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. AM Best keeps certain activities of its business units separate from each other to preserve the independence and objectivity of their respective activities. As a result, certain business units of AM Best may have information that is not available to other AM Best business units. AM Best has established policies and procedures to maintain the confidentiality of certain confidential (non-public) information received in connection with each analytical process. 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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

    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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.


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