AM Best rates Allianz Brazil; warns on regulatory changes
Allianz Global Corporate & Specialty Resseguros Brasil (AGCS Brazil), the business formed earlier this year by Allianz Global Corporate & Specialty to operate as a local reinsurer in Brazil, has secured a financial strength rating of A from AM Best.
AGCS Brazil is headed up by Angelo Colombo and has offices in Rio de Janeiro and São Paulo. It has already received an A- rating from Standard & Poor’s.
AM Best said the rating reflects ACGS Re Brazil’s solid business plans, adequate risk-adjusted capital and an existing client base in the market that provides a balanced book of business.
But it also noted that partially offsetting these positive things are the numerous companies that have entered the Brazilian reinsurance market in recent years, making it a highly competitive environment. In addition, as the Brazilian reinsurance market is still somewhat in a state of flux, the potential for regulatory changes exists, which could negatively impact ACGS Re Brazil.