Fitch affirms Allianz AA- rating

Fitch has affirmed Allianz’s insurer financial strength (IFS) rating at 'AA-'.

Concurrently, Allianz’s long-term issuer default rating (IDR) was affirmed as 'AA-' and selected Allianz subsidiaries affirmed at IFS 'AA'. Fitch said the outlook for all ratings is stable.

Allianz’s affirmation reflects the ratings agency’s expectation that the strong quality of the group's investment and capital composition will lead to the insurer reporting strong 2010 results.

The agency also expects that profitability from the non-life business will improve during 2011, as the group management continues to focus on underwriting discipline.

“Allianz's ratings reflect the group's strong technical profitability, strong and improved consolidated group capital position, broad diversification by geography and by product, and solid business position in its key markets. In addition, the group's ratings also benefit from an investment mix of sound credit quality.”

“Partially offsetting these rating factors is the currently suppressed technical profitability in the non-life business segment, partly driven by claims due to severe weather related events and natural catastrophes in 2010.”

Allianz’s profitability was seen by Fitch as sustainable and strong with 9-month operating profits increasing by 19.8% to €6.1bn. In non-life insurance, Allianz continued to focus on profitable underwriting with currency-adjusted premiums decreasing 1.1%. The group's 9-month combined ratio in 2010 improved to 97.9% compared with 98.2% over the same period in 2009.