OLDWICK, N.J., December 06, 2021–(BUSINESS WIRE)–AM Finest has commented that the Credit score Rankings (scores) of Allianz Life Insurance coverage Firm of North America (Allianz Life) (Minneapolis, MN) and its wholly owned subsidiary, Allianz Life Insurance coverage Firm of New York (Allianz New York), stay unchanged following the Dec. 3, 2021, announcement that it has entered into an settlement to reinsure a $35 billion fastened index annuity (FIA) portfolio with Talcott Decision Life Insurance coverage Firm (Talcott Decision) and Decision Life. Allianz SE (Allianz) (Germany) is the last word father or mother of Allianz Life and Allianz New York.
The reinsurance association contains 100% quota share reinsurance for a closed FIA ebook and a 50% quota share for an open FIA ebook. The reinsurance settlement additionally contains collateral and a number of layers of safety. Allianz International Buyers and Pacific Funding Administration Firm, LLC (PIMCO) will stay the first asset managers of the reinsured enterprise, whereas Allianz Life will proceed to handle administration of the insurance policies and supply assist to Allianz Life’s U.S. policyholders.
The transaction is according to Allianz Life’s technique to unlock worth in its life insurance coverage enterprise, handle capital on its stability sheet and improve synergies with its asset administration enterprise. AM Finest believes that Allianz Life’s reinsurance settlement with the named counterparties is a internet optimistic. The settlement will unlock $4.1 billion in worth and unencumber regulatory capital for Allianz. Upon closing, the transaction is predicted to enhance Allianz Life’s return on fairness by about 6 proportion factors to roughly 18% on a proforma foundation as of Sept. 30, 2021.
This press launch pertains to Credit score Rankings which were revealed on AM Finest’s web site. For all score info regarding the discharge and pertinent disclosures, together with particulars of the workplace chargeable for issuing every of the person scores referenced on this launch, please see AM Finest’s Latest Ranking Exercise internet web page. For added info relating to the use and limitations of Credit score Ranking opinions, please view Information to Finest’s Credit score Rankings. For info on the correct use of Finest’s Credit score Rankings, Finest’s Preliminary Credit score Assessments and AM Finest press releases, please view Information to Correct Use of Finest’s Rankings & Assessments.
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