Allianz unit upgraded

Jonathan Rest

AM Best has upgraded the financial strength rating to A+ from A of Allianz Global Corporate & Specialty North America, which consists of California-based Allianz US and its wholly owned subsidiary, Allianz Underwriters. The ratings reflect AM Best’s view of the importance of Allianz Global Corporate & Specialty, North America to parent Allianz, its excellent risk-adjusted capitalisation, solid business franchise, improved underwriting and operating performance in recent years and anticipated earnings diversification through its expanding aviation portfolio. Offsetting factors are the historically poor underwriting performance and the inherent risks associated with the recent growth in premium production. AM Best also affirmed the A rating of Fireman’s Fund, recognising its solid stand-alone capitalisation and significant improvement in underwriting and operating performance. The outlook for all ratings is stable.