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Japan: S&P rating upgraded to "AA" (stable)

Standard & Poor’s (S&P) has raised the financial strength rating of AGCS in Japan which operates under the name Allianz Fire and Marine Insurance Japan Ltd (AZFM) to "AA" which is the same level as the group credit profile of the Allianz Group.

PRESS RELEASE - Munich/Tokyo. July 15 2014.

Standard & Poor's (S&P) has raised the financial strength rating of AGCS in Japan which operates under the name Allianz Fire and Marine Insurance Japan Ltd (AZFM) to "AA" (stable). This is above the sovereign ratings on Japan (AA-/Negative/A-1+) and at the same level as the group credit profile of the Allianz Group.

"We are now more confident that AGCS and AZSE have the ability and willingness to sufficiently support AZFM under a hypothetical sovereign stress scenario. As AZFM's client base overlaps with that of AGCS SE and, implicitly, that of AZSE, we consider that the parent has a strong incentive to provide financial support to AZFM if needed, to avoid reputational damage to the AGCS SE franchise," said S&P in its report on the rating upgrade.

The report added that S&P continues to regard AZFM as "core" to its parent, Allianz Global Corporate & Specialty SE, and to its ultimate parent, Allianz SE. This is mainly because more than 90% of AZFM's insurance risk is reinsured by AGCS SE, and AZFM contributes to a global offering for AGCS SE's largest corporate clients in a major industrial marketplace.

The full S&P press release on the rating upgrade can be found here.