A.M. Best Affirms Ratings of Assurances Generales de France SA's Main Subsidiaries

In A.M. Best's opinion, Allianz IARD and Allianz Vie have suffered from declining economic and challenging market conditions in 2008 and 2009. During 2008, the capital position deteriorated for Allianz Vie, which has seen a sharp decline in the value of in-force business (VIF), while Allianz IARD has maintained a stable capital position. A.M. Best believes that AGF SA's dividend policy and investment performance are likely to be the main drivers for the companies' capitalisation for 2009.

Furthermore, the companies are facing increased pressure on performance and maintaining their market position and profile. Allianz IARD is expected to have an underwriting loss in 2009 resulting from high catastrophe losses in the first quarter, pushing its combined ratio above 100%. Allianz Vie's performance has suffered from the downturn of investment markets, coinciding with a reduction in demand for traditional life insurance products for 2009. Moreover, A.M. Best expects a challenging climate over the next two years with both entities expecting a reduction in premiums written in 2009. A renewed strategic focus in 2010 is likely to be adopted following the rebranding into the Allianz group. A.M. Best expects Allianz IARD and Allianz Vie to maintain their strong positions in France and their profitability to improve in 2010.

The ICR of "aa" remains unchanged for Assurances Generales de France SA.

The ratings of "aa-"of the following subordinated debt issued by Assurances Generales de France SA remain unchanged:

-- EUR 225 million 6.625% subordinated bonds, due 2020

-- EUR 225 million 2.896% subordinated bonds, due 2020

The rating of "a+" of the following junior subordinated debt issued by Assurances Generales de France SA remains unchanged:

-- EUR 400 million 4.625% junior subordinated bonds, due 2015

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

SOURCE: A.M. Best Co.

A.M. Best Co. 
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Vasilis Katsipis, +(44) 20 7626 6264 
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