Best Sees No Change in Allianz Ratings Following Buy-Outs

January 19, 2007

A.M. Best Co. has commented that the financial strength rating of “A+” (Superior) of Germany’s Allianz Societas Europaea, AGF Group and Allianz Lebensversicherungs-AG “remains unchanged following Allianz’s intention to acquire the minority shareholdings in these two subsidiaries” (See IJ web site Jan. 18).

Best said it “believes that risk-adjusted capitalization will deteriorate following the acquisition of the minority shareholdings, with economic capital likely to be reduced by €7.5 billion ($9.7 billion) in the short term.”

However the rating agency also noted that the “”anticipated strong operating results for 2006 will partially offset the impact, with risk-adjusted capitalization likely to be in line with the current rating and at approximately year-end 2005 levels.

“The acquisitions are likely to assist in improving operating performance by maximizing the impact of the implementation of Allianz’s Sustainability Program and increased control of its German life, French and Spanish operations.”

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