Standard & Poor’s (S&P) has raised the financial strength and counterparty credit ratings of Allianz Australia and its associated company, Allianz New Zealand.

The ratings agency says the upgrade from A­- to A reflects the insurer’s strengthened operating performance during the year. The Allianz half-year result to June 30 confirmed it as a sound business franchise with intermediaries and brokers.

Allianz Australia has often been mentioned in commentary over the past year as the most likely insurer to be bought by one of the other top five players – a viewpoint that recently prompted the company’s European chiefs to issue a stiff rebuttal. Yesterday MD Terry Towell told Sunrise Exchange News the A rating shows confidence in the company’s ability to sustain its performance.

“We are delighted to have this independent confirmation of our positive direction, which is the result of a lot of hard work and increasing customer focus in the past few years.”

Michael Vine – S&P Credit Analyst, Financial Services Ratings Group – says Allianz maintains capital resources and reserves required to uphold its rating.

“We now expect the local group to report a solid year-end result and to maintain a sound financial and business position.”