Allianz Australia's capital adequacy to remain strong

Thanks to removal of certain non-life liability adjustments, deferred acquisition cost deductions.

S&P Global Ratings expects Allianz Australia's capital adequacy will remain robust, exceeding the 99.8% confidence level through 2026 under the newly revised capital model criteria.

Key changes include an improvement in Allianz Australia's total adjusted capital (TAC) due to the removal of certain non-life liability adjustments and deferred acquisition cost deductions. 

Additionally, a more explicit recognition of risk diversification has further bolstered the insurer's capital adequacy. 

However, the recalibration of capital charges to higher confidence levels somewhat balances these gains.

The stable outlook reflects the company's strategic importance to its parent, Allianz SE, one of the largest global insurers. 

Whilst the ratings could be adjusted in line with any changes to Allianz SE’s ratings, the overall expectation is that Allianz Australia will continue to benefit from the group's support, maintaining its strong position in the Australian market.