Allianz future looks brighter: S&P

Rating agency Standard & Poor’s has revised the outlook for Allianz Canada from negative to stable, citing the expectation of improved results in 2004 and 2005. As well, Allianz Canada (which includes Allianz Insurance Co. of Canada and Trafalgar Insurance Co. of Canada) has seen its “BBB+” counterparty credit and financial strength ratings affirmed.
“In 2004, S&P expects Allianz Canada to report a combined loss and expense ratio of about 100% and net income of $30 million,” notes credit analyst Michael Gross. “The continued financial improvement is attributable to management actions aimed at achieving strong and sustainable earnings and some improvement in industry operating conditions.”
S&P also notes the strong Allianz brand and the reinsurance, investment, underwriting and management capabilities provided by parent Allianz AG.
In the first quarter of 2004, Allianz Insurance Co. of Canada reported net income of $5.9 million, while Trafalgar posted net income of $2.3 million. This compares with losses of $2.0 million and $2.9 million in the first quarter of 2003, respectively.