OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best has affirmed the financial strength rating of A
(Excellent) and the issuer credit ratings of ďa+Ē of Allianz Life
Insurance Company of North America (Minneapolis, MN) and its
subsidiary, Allianz Life Insurance Company of New York (New York,
NY) (collectively known as Allianz Life). The outlook for all ratings is
The ratings reflect Allianz Lifeís strategic position under its ultimate
parent, Allianz Societas Europaea (Allianz SE) (Germany), its
leading U.S. market position within the fixed index annuity market,
solid risk-based capital position, well-developed enterprise risk
management framework and the recent improvement in its operating
results. The ratings also recognize Allianz Lifeís unlevered U.S.
balance sheet with no financial leverage and limited use of operating
leverage. Additionally, the ratings recognize Allianz SEís global
business profile as a leading financial services company and the
diversification benefits provided by its core business segments within
life/health, property/casualty and asset management sectors.
These positive rating factors are partially offset by Allianz Lifeís
limited business profile, which demonstrates a significant concentration
in fixed and variable annuity products and increasing levels of
competition within the United States from new entrants to the fixed
index annuity marketplace. Allianz Lifeís operating profile remains
significantly correlated to interest rate and equity market risks with
continued pressure on investment spreads due to low interest rates.
Additionally, the ratings reflect a higher level of mortgage loans to
capital and continued poor operating performance in the organizationís
legacy variable annuity block.
Positive rating actions could occur for Allianz Life with increased
profitable diversification in its business profile resulting in higher
strategic importance of its contribution to Allianz SE. However,
negative rating actions could occur if there were a considerable decline
in the organizationís risk-adjusted capital or operating earnings, a
reduction in A.M. Bestís view of the strategic importance of the group
to Allianz SE and/or deterioration in the financial strength of Allianz
The methodology used in determining these ratings is Bestís Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Bestís rating process and contains the different rating criteria
employed in the rating process. Bestís Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS
Colleene Parodi, 908-439-2200, ext. 5095
Mirabella, 908-439-2200, ext. 5892
Assistant Vice President
Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
Source: A.M. Best