Allianz Risk Transfer AG - Allianz Global Corporate & Specialty
Allianz Risk Transfer AG - Allianz Global Corporate & Specialty
Allianz Risk Transfer AG - Allianz Global Corporate & Specialty
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Reserves<br />
We consider ART's loss reserves to be conservative, although they have not been independently certified in recent<br />
years. The company determines reserves individually for each transaction, either when it suspects losses or receives<br />
notification. This process is supported by ART's probabilistic modeling methodology. Reserves are not discounted in<br />
the financial statements, and we view ART as cautious in its recognition of revenue and earnings.<br />
Reinsurance<br />
ART purchases reinsurance on a contract-by-contract basis, and we consider reinsurer credit risk to be minimal. ART<br />
generally uses highly rated reinsurers (with a minimum rating of 'A-') or secured letters of credit to protect its<br />
transactions. We view ART's reinsurance panel as providing strong protection against the potential volatility of its<br />
nontraditional portfolio on a deal-by-deal basis.<br />
Financial Flexibility: Very Strong, With AZSE's Support<br />
Table 4<br />
<strong>Allianz</strong> <strong>Risk</strong> <strong>Transfer</strong>/Financial Statistics<br />
--Year ended Dec. 31--<br />
(Mil. CHF) 2011 2010 2009 2008 2007<br />
Capitalization<br />
Reported shareholders' equity* 675 479 484 413 485<br />
Change in adjusted equity (%) 40.9 (1.0) 17.2 (14.8) 8.5<br />
Reinsurance<br />
Reinsurance utilization ratio (%) 70.3 30.8 41.4 15.3 14.0<br />
Reserving<br />
Loss reserves/net premiums written (%) 628.0 178.3 245.6 132.1 111.6<br />
*Excluding outstanding share capital. CHF--Swiss franc.<br />
As a strategically important member of the <strong>Allianz</strong> group, ART's financial flexibility is tied to that of its parent and we<br />
therefore consider it to be very strong.<br />
Related Criteria And Research<br />
• Principles Of Credit Ratings, Feb. 16, 2011<br />
• Management And <strong>Corporate</strong> Strategy Of Insurers: Methodology And Assumptions, Jan. 20, 2011<br />
• Refined Methodology And Assumptions For Analyzing Insurer Capital Adequacy Using The <strong>Risk</strong>-Based Insurance<br />
Capital Model, June 7, 2010<br />
• Interactive Ratings Methodology, April 22, 2009<br />
• Group Methodology, April 22, 2009<br />
Ratings Detail (As Of September 3, 2012)<br />
Operating Companies Covered By This Report<br />
<strong>Allianz</strong> <strong>Risk</strong> <strong>Transfer</strong> <strong>AG</strong><br />
WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 3, 2012 12<br />
1006376 | 301069137
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