Allianz Via Assurances Plcd On CreditWatch Pos by S&P

Business Wire, Nov 18, 1997

LONDON--(BUSINESS WIRE)--Standard & Poor's CreditWire 11/18/97--Standard & Poor's today placed the triple-'B' counterparty credit and claims-paying ability ratings of Allianz Via Assurances SA of France on CreditWatch with positive implications. The action follows the announcement that Allianz AG (rated double-'Api') intends to acquire a majority stake in the AGF group (whose principal operating subsidiaries Assurances Generales de France Vie and Assurances Generales de France Incendie Accidents Reassurances Transport have counterparty credit and claims-paying ability ratings of double-'A'-minus, on CreditWatch Negative) and as part of the transaction, Allianz Via Assurances would become a subsidiary of AGF. The Allianz bid is recommended for acceptance by the board of AGF. At the same time Standard & Poor's will continue to hold AGF on CreditWatch with negative implications following bids by Assicurazioni Generali SpA (Generali; rated single-'Api') and now Allianz AG. The ratings of Generali and Allianz AG are unaffected as there is no surveillance on public information ratings.

Allianz AG is the Germany-based holding company for one of the world's largest insurance groups. If the bid for AGF is successful, Allianz estimates consolidated premium income would amount to DM110 billion ($64 billion) and total assets at DM480 billion ($277 billion).

Allianz Via Assurances is the principal French nonlife insurer in the Allianz group of companies. Its rating reflects the company's position as an important part of the Allianz group's international network and its standing as one of the more important insurers in the French commercial lines market. The company has a less significant role in French personal lines insurance. Standard & Poor's believes Allianz Via Assurances has overcome a very difficult period in terms of poor earnings and weak capitalization and that the company's finances are now adequate.

Resolution of these CreditWatch actions will follow a successful bid either by Generali or Allianz and an assessment of the financial strength of Allianz Via Assurances and AGF under the new corporate structure, Standard & Poor's said. -- CreditWire

CONTACT: Corinne Cunningham, London (44) 171-826-3550

David Anthony, London (44) 171-826-3553