A.M. Best Upgrades Ratings of AGCS Marine Insurance Company

A.M. Best Co. has upgraded the financial strength rating to A+ (Superior) from A (Excellent) and issuer credit rating to "aa" from "a" of AGCS Marine Insurance Company (AGCS Marine) (Chicago, IL), a wholly owned subsidiary of Allianz Global Risks US Insurance Company (Allianz US) (Burbank, CA). The outlook for both ratings is stable.

These rating actions reflect a change in the organizational structure of AGCS Marine, which on January 1, 2010, became a subsidiary of Allianz US through a stock dividend from Fireman's Fund Insurance Company (Novato, CA).

The ratings reflect A.M. Best's view that AGCS Marine is an integral part of the strategy of its ultimate parent company, Allianz Societas Europaea (Allianz SE). Allianz SE provides explicit support to Allianz US and its group members. Other rating factors include the North American consolidated group's strong risk-adjusted capitalization, solid business franchise, improved underwriting and operating performance in recent years and anticipated earnings diversification. Offsetting these positive rating factors are the historically poor underwriting performance and the inherent risks associated with the recent growth in premium production.

The outlook recognizes A.M. Best's view that continued support from Allianz SE, along with improved underwriting processes and risk mitigation initiatives, will allow the group to generate strong sustainable operating returns.

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.