Allianz granted license as “branch” of U.S. operation

Allianz’s remaining business in Canada Allianz Global Risks (AGR Canada) has received approval from the federal insurance regulator to operate as a branch of Allianz Global Risks US Insurance Company.
The company also expects to receive its provincial licenses in November, notes an AGR Canada press release. Among its offerings in this country will be commercial property, engineering/course of construction, casualty and commercial fleet auto business.
This line-up should expand, however, the company notes, as it is applying for an extended license for other products. In the interim, those products will be offered on a temporary basis by ING Insurance Co. of Canada ING recently bought out Allianz Insurance Co. of Canada, which included Allianz’s personal lines and small-to-medium commercial risks.
One reason to seek license as a branch of the U.S. company is that AGR US enjoys a “AA-” (very strong) rating from Standard & Poor’s and an “A” (excellent) rating from A.M. Best, notes Volker Albrecht, vice president of AGR Canada. He promises a “seamless” licensing change for brokers and clients.
In the meantime, S&P has placed a “creditwatch developing” marker on Allianz Insurance Co. of Canada as a result of its sale to ING. “S&P placed the ratings on CreditWatch developing because of the general uncertainty related to the unknown financial strength, strategic intentions, and operational intentions of the acquirer as well as the risks if the transaction does not close,” says credit analyst Michael Gross.