Thailand’s Allianz Ayudhya General Insurance Ratings Affirmed Excellent - AM Best

KUALA LUMPUR, Aug 28 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Thailand’s Allianz Ayudhya General Insurance Public Company Limited (AAGI).

The outlook of these credit ratings (ratings) is stable, reflecting AAGI’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

In addition, AAGI benefits from rating enhancement from Allianz SE (Allianz Group), reflecting the explicit and implicit support it receives from the group, according to AM Best in a statement.

AAGI’s solid balance sheet is supported by its very strong level of risk-adjusted capitalisation at year-end 2024, as measured by Best’s Capital Adequacy Ratio.

The company’s risk-adjusted capitalisation remains sensitive to the company’s ultimate capital distribution levels and earnings retention; however, it is expected to remain at least at the strong level over the medium term.

With the majority of its investments allocated to cash, deposits and high-quality bonds, AM Best views AAGI’s investment strategy as conservative, and it has a moderate reliance on reinsurance to support its underwriting capacity and manage its exposure to catastrophic events.

Operating performance dipped slightly in 2024 with a combined ratio of 101.1 per cent, compared with 96.7 per cent in 2023, primarily due to flood losses in northern Thailand and higher health claims, though this was partially offset by an improved motor insurance portfolio.

The company’s operating performance remained profitable in the first half of 2025, despite some impact from the Thailand earthquake in March. Its stable investment income, which is comprised of mainly interest income, continues to support overall profitability.

While AAGI holds a limited business profile, operating solely within Thailand, it is the country’s ninth largest general insurer, with a 3.7 per cent market share. The 2023 amalgamation with Aetna Health Insurance (Thailand) has bolstered its health insurance scale and diversified its portfolio.

-- BERNAMA