AM Best downgrades Allianz Global & Specialty North America’s ICR

A.M. Best has affirmed Allianz Global Corporate & Specialty North America (AGCS NA)’s financial strength rating of A+ (Superior) and downgraded its issuer credit rating (ICR) to “aa-” from “aa.”
The downgrading of the AGCS NA’s ICR reflects the fact that its ultimate German parent company, Allianz Societas Europaea (Allianz SE), also had its ICRs downgraded recently, an A.M. Best release said.
“In A.M. Best’s opinion, the AGCS companies are an integral part of the strategy of Allianz SE,” the release says. “These companies contribute a significant part of the consolidated non-life gross premium income of Allianz SE, and they are the group’s primary risk carriers for corporate and specialty risks.
“Support from Allianz SE is underpinned by a profit and loss absorption agreement provided to AGCS AG.”
The ratings of AGCS NA also consider the insurer’s “sound risk-adjusted capitalization, strong business franchise and solid underwriting and operating performance in recent years.”