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) that on a consolidated basis has a balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favorable business profile and appropriate 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 (P/C) and accident and health. It is focused solely on Mexico’s market, and its insurance portfolio, as of September 2023, was composed of life (54%), P/C (33%) and accident and health (13%). 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 and in the ongoing strategic initiatives.

Allianz Mexico’s 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. The company’s underwriting practices are sound, and further benefit from the synergies provided by the group through the rest of its financial entities, which have enabled the company to contain operating expenses.

AM Best expects the group’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), to remain at the strongest level for year-end 2023 and prospectively, supported by strong earnings generation and prudent capital management. The balance sheet strength assessment also benefits from the group’s robust asset-liability and liquidity management and prudent reserving practices. Financial leverage and coverage ratios are supportive of the balance sheet strength assessment and financial flexibility is considered excellent due to the group’s good access to capital markets.

If there are negative rating actions taken on the main operating subsidiaries of Allianz, as a result of weakening in risk-adjusted capitalization, or a sustained deterioration of operating performance, Allianz Mexico’s ratings 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. If there are positive rating actions taken on the main operating subsidiaries of Allianz over a longer term, as a result of an outperformance of its peers in terms of operating results for an extended period of time and a strengthening of its key rating fundamentals to a standard commensurate with a higher rating level, Allianz Mexico’s ratings would mirror those same actions.

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 Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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