AM Best has upgraded the financial strength rating to A (Excellent) from A- (Excellent) of Allianz Global Corporate & Specialty AG (Germany).
The outlook is stable.
AM Best said the ratings reflect the enhancement received from the implicit support of its ultimate parent, Allianz Aktiengesellschaft (Allianz).
It added other rating factors include the company's excellent consolidated risk-adjusted capitalisation, strong prospective operating performance and excellent business profile.
Underwriting results for the combined entity are likely to be positive in 2006 with an anticipated combined ratio of approximately 97% as the company has implemented stricter risk management procedures and reduced its exposure to US catastrophe risks.
AM Best believes the company has a diversified portfolio, both by business line and geographically, which is likely to increase Allianz's visibility in this segment.
