November 21, 2002 by Canadian Underwriter
Rating agency A.M. Best has placed the Allianz group’s “A++ (superior)” financial rating under review with negative implications. The negative review also applies to the holding company’s current debt rating of “AA+”.
A.M. Best says the negative review was issued in order for the rating agency to evaluate the full impact of Allianz’s third quarter loss on the group’s capital base. Allianz recently disclosed a higher than expected 2.5 billion (Cdn$3.9 billion) net loss for the third quarter of this year. The rating agency is also concerned with Allianz’s plan to raise 2 billion through a debt issue. A.M. Best notes that the group is already highly geared. Other risk factors which could negatively affect the group is the drop in equity market values while Dresdner Bank continues to produce negative financial results, the rating agency observes.