Fitch Ratings has affirmed
At the same time, the agency has affirmed
The affirmation reflects
Key Rating Drivers
Very Strong Company Profile: Allianz has one of the strongest franchises in the global insurance industry. It is the largest insurance company in
Well-Diversified Insurance Portfolio: Allianz is well diversified in business lines and geographical exposure, and through distribution channels. Along with its asset-management activities, Allianz serves all product lines for old-age provisioning and health insurance, as well as all major property and casualty insurance segments. Its strong non-life franchise with leading market shares in
'Very Strong' Capitalisation: Allianz scored 'Very Strong' in Fitch's Prism Factor-Based Capital Model (Prism FBM), based on end-2021 data (unchanged). Reported regulatory solvency ratios are also very strong with 209% at end-2021 (2020: 207%). The financial leverage ratio (FLR), as calculated by Fitch, remained very strong at 22% at end-2021 (2020: 23%). We expect capitalisation and financial leverage to remain very strong.
Very Strong Underlying Profitability: We expect operating performance to remain very strong in 2022, despite the high-inflation environment and financial market uncertainty related to the war in
In 2021, operating profit rose to
Asset Management Stable Contributor:
Very Strong Asset/Liability Management: Fitch considers
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
A sustained, significant increase in the Prism FBM score to 'Extremely Strong'.
An improvement in the FLR to below 15%.
A sharp and sustained improvement in profitability with ROE consistently above 15%.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A deterioration of
A sustained decline in profitability, with a net ROE below 9%.
A deterioration of the FLR to more than 28%.
Best/Worst Case Rating Scenario
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
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