AM Best has affirmed the Financial Strength Rating of A+ (Superior), the Long-Term Issuer Credit Rating of “aa” (Superior), and the Mexico National Scale Rating of “aaa.MX” (Exceptional) of Allianz México, S.A., Compañía de Seguros (Allianz Mexico) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Allianz Mexico’s strategic importance as a subsidiary of Allianz SE (Allianz), which on a consolidated basis has a balance sheet strength that AM Best assesses as strongest, as well as strong operating performance, very favorable business profile and very strong enterprise risk management.
Allianz is one of the world’s largest insurance groups, with superior diversification by geography and business line, and leading positions in many developed and emerging markets, offering a complete range of life and non-life insurance products, as well as asset management services. Its competitive position is supported by its scale, strong management capabilities, dynamic strategy and strong brand.
Allianz Mexico specializes in offering insurance coverages across a broad spectrum of categories in life, property/casualty and accident and health. It is focused solely on Mexico’s market, and the insurance portfolio, as of December 2020, was composed of life (53%), property/casualty (32%) and accident and health (15%). The company manages life administration funds in its life business segment, consisting mainly of investment and savings products.
Allianz Mexico forms part of the IberoLatAm division of Allianz, and is identified by the group as one of the key regions of future insurance growth outside its core European markets. Allianz Mexico also is integrated in all core processes of the group, as well as in the ongoing strategic initiatives.
Operating performance is characterized by consistently positive bottom-line results, derived from the company’s well-diversified business portfolio, and financial flexibility in terms of size, capital and reinsurance use. Underwriting practices are sound, and further benefit from the synergies provided by the group through the rest of its financial entities, which has enabled the company to contain operating expenses.
The group’s consolidated risk-adjusted capitalization remains at the strongest level, as measured by Best Capital Adequacy Ratio (BCAR), which fosters underwriting growth and provides financial flexibility. The company also is supported by an appropriate reinsurance program, placed mainly with Allianz, and has an adequate liquidity profile.
If there are positive rating actions on the main operating subsidiaries of Allianz, as a result of a sustained improvement of operating performance, the ratings of Allianz Mexico likely would move in tandem. Likewise, if there are negative rating actions on the main operating subsidiaries of Allianz, as a result of weakening in risk-adjusted capitalization, or a sustained deterioration of operating performance, the ratings of Allianz Mexico would mirror those same actions. A change in AM Best’s perception regarding the strategic importance of Allianz Mexico to the group also could impact Allianz Mexico’s ratings.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Olga Rubo, FRM
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Manager, Public Relations
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Senior Director, Analytics
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