Allianz S’pore will improve premiums in the next two years – S&P Global Ratings

Problems may still rise if the insurer deviates from strategise or faces funding challenges.

Allianz Insurance Singapore’s (AIS) capitalisation is expected to support its business growth plans, with parent support available if needed. Despite initial operational challenges, AIS is anticipated to enhance its premium growth over the next two years, S&P Global Ratings said. 

The insurer's earnings are expected to break even after three to five years, influenced by initial operational costs and expansion efforts. AIS is viewed as strategically important, contributing to the Allianz group's growth strategy in Singapore and Southeast Asia. 

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The ratings incorporate three notches of uplift for implied group support.

The revised capital model criteria implementation did not prompt rating changes. However total adjusted capital increased, and capital adequacy declined due to recalibrated charges. 

The stable outlook reflects expectations that AIS will maintain its standalone credit profile (SACP) and remain a vital Allianz group subsidiary. 

Concerns could arise if AIS deviates from growth strategies or faces capital funding challenges. While upgrades are unlikely, they may occur if AIS strengthens its relevance to the group or improves its SACP.