Ratings Recap: Dresdner, Allianz, LEMMA, Malayan, Chaucer 1084, Fubon

Standard & Poor’s Ratings Services has announced that its ratings and outlook on Allianz SE -‘AA’ debt ‘A-1+’ with a stable outlook – and related entities were unaffected by our revision of the outlook to stable from positive on its German subsidiary Dresdner Bank AG (‘A+’/Stable/’A-1’), which S&P announced in a separate bulletin. “The earnings capacity of the Allianz group remains very strong despite the likely setback in Dresdner’s profitability, which is likely to extend into 2008,” said S&P. Allianz ratings reflect its “strong and highly diversified business fundamentals, as further evidenced by “continued very strong operating results in the group’s insurance and asset-management operations.”

A.M. Best Co. has upgraded to “aa” from “aa-” the issuer credit ratings (ICR) of Allianz Societas Europaea (Allianz SE). Best also affirmed Allianz Se’s financial strength rating (FSR) of A+ (Superior) and upgraded to “aa” from “aa-” the ratings on senior debt and to “aa-” from “a+” on subordinated debt issued or guaranteed by Allianz SE. The outlook on all the ratings remains stable. Best said the rating actions reflect its view of improving operating performance, strong risk-adjusted capitalization and very strong business position, particularly in Germany and other European countries.”

A.M. Best Co. has affirmed the financial strength rating of ‘B+’ (Good) and the issuer credit rating of “bbb-” of Ukraine’s’ Lemma Insurance Company with a stable outlook. “The ratings reflect Lemma’ s strong risk-adjusted capitalization, good operating performance and improving business profile,” Best explained. “An offsetting rating factor is its significant concentration in financial risk insurance.”

A.M. Best Co. has affirmed the financial strength rating of ‘B++’ (Good) and the issuer credit rating of “bbb” of Philippines-based Malayan Insurance Company, Inc. (MICO) with a stable outlook. “The ratings reflect MICO’s strengthened risk-adjusted capitalization, strong market presence with a diversified distribution network and stable investment income,” Best explained. “MICO is well capitalized as reflected in its moderate underwriting leverage and strong risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR).”

Standard & Poor’s Ratings Services has revised its outlook on the Lloyd’s Syndicate Assessment (LSA) of Chaucer – Syndicate 1084 to positive from stable. S&P also affirmed its LSA [Lloyd’s Syndicate Rating] of ‘3’ (average dependency) on Chaucer. “The outlook revision reflects Chaucer’s improving competitive position while maintaining good and stable earnings, and strong risk controls,” indicated S&P credit analyst Ali Karakuyu. “These positive factors are partially offset by the syndicate’s modest leadership position within its non-motor business divisions,” he added.

Standard & Poor’s Ratings Services has affirmed its ‘BBB+’ long-term and ‘A-2’ short-term counterparty credit ratings on Fubon Financial Holding Co. Ltd. with a stable outlook. S&P also affirmed its ‘A-‘ long-term and ‘A-2’ short-term counterparty credit ratings and ‘C+’ bank fundamental strength rating on Taipei Fubon Commercial Bank Co. Ltd. and its ‘A’ long-term counterparty credit and insurer financial strength ratings on Fubon Insurance Co. Ltd. The outlooks on the long-term ratings are stable. Taipei Fubon Bank and Fubon Insurance are core subsidiaries of Fubon FHC. “The ratings on Fubon FHC reflect the group’s good market position, balanced business mix, prudent financial management, and satisfactory capitalization,” explained S&P credit analyst Connie Wong. “These positive factors are partly offset by the moderate profitability of the group’s banking operation due to strong competitive conditions.”