A.M. Best Takes Ratings Actions on Allianz SE, Swiss Re

"The rationale for taking rating action at this point is largely attributable to the current level of credit and liquidity risk for insurers operating within the eurozone countries—most notably Italy and Spain," A.M. Best says in a statement. "The perceived strain on the economies of these countries and companies operating within their borders is growing rapidly with very little evidence of a solution being formulated to address near-term concerns."

The financial strength rating of "A-plus" for Allianz SE and its main subsidiaries has been affirmed but negative action might occur if the insurer's risk-adjusted capital worsens or if there is a descent in the operating environment in "key territories."

The financial strength rating of "A" for Fireman's Fund has also been affirmed.

"Negative rating action could be taken if Fireman's Fund is deemed not sufficiently strategically important to the global operations of Allianz SE to receive continued rating enhancement," A.M. Best says.

Swiss Re Upgraded

A.M. Best Co. has upgraded the financial strength rating of Swiss Reinsurance Co. (Swiss Re) and its subsidiaries to "A-plus" from "A."

Following major investment losses in 2008 by Swiss Re, A.M. Best says it acknowledges measure reinsurer has taken to reduce risk in its investment portfolio.

"Swiss Re continues to maintain a dominant position in its chosen markets and benefits from a global franchise with a large selection of products along with a robust worldwide distribution system," A.M. Best says in a statement. "The company has established sound client relationships with some of the largest companies in the world while offering larger lines and capacity."

A.M. Best notes that Swiss Re's combined ratio of 104.6 through the first nine months of 2011 compares favorably to the market. The company's non-life operations have been strong, says A.M. Best, adding that Swiss Re's enterprise risk management program is effective.