LONDON--(BUSINESS WIRE)--A.M. Best has assigned a financial strength rating of A+ (Superior) and an issuer credit rating of “aa-” to Allianz Worldwide Care S.A. (AWC) (France). The outlook assigned to both ratings is stable.
The ratings reflect AWC’s strategic importance to its ultimate parent, Allianz SE (Allianz), a leading global financial services provider, and the implicit operational support that AWC receives from the Allianz group. Additionally, the ratings consider AWC’s excellent business profile, strong risk-adjusted capitalisation and robust operating performance.
In 2013 and 2014, in order to create synergies and improve its client offering, Allianz combined a number of its entities that operate in the Business-to-Business-to-Consumer (B2B2C) segment into a new division named Allianz Worldwide Partners S.A.S. (AWP). As part of this initiative, AWC was established in France and assumed other group companies’ international life and health business by means of several portfolio transfers. In A.M. Best’s view, being the only life and health carrier of AWP, which itself has become one of Allianz’s largest and most profitable business units, AWC plays a significant role for the group and benefits from the latter’s objective to expand its worldwide B2B2C activities.
A.M. Best expects AWC to maintain strong risk-adjusted capitalisation in the medium term, underpinned by the short-tailed nature of its business, as well as the excellent quality of its reinsurance protection and investment assets. AWC’s book of business’ underwriting performance has been robust with combined ratios in the mid-90s range over the past five years. Driven by organic portfolio expansion, in 2015, AWC’s financial performance is expected to improve from that of 2014, when it reported gross written premiums of EUR 1.1 billion and profit after tax of EUR 37.3 million. AWC maintains an excellent business profile as one of the largest international health insurers. In the medium term, AWC is anticipated to report premium growth of approximately 10% per annum, supported by access to new business, as well as development of its existing portfolio through enhanced client offering and digital solutions.
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