AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Allianz Ayudhya General Insurance Public Company Limited (AAGI) (Thailand). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has assigned a Thailand National Scale Rating (NSR) of aaa.TH (Exceptional) to AAGI. The outlook assigned to the NSR is stable.

The ratings reflect AAGI’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. In addition, AAGI benefits from rating enhancement from Allianz SE (Allianz Group).

AAGI’s balance sheet strength assessment is assessed as strong, supported by its strongest level of risk-adjusted capitalisation at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). The company benefits from strong financial flexibility with access to capital markets through its listed parent holding company, Allianz Ayudhya Capital Public Company Limited [SET: AYUD]. AM Best views AAGI’s investment strategy as conservative, with the majority of its investments allocated to cash, deposits and high-quality bonds. The company has a moderate reliance on reinsurance to support its underwriting capacity and manage its exposure to catastrophic events. However, this risk is partially mitigated by the high credit quality of the reinsurance panel.

AAGI’s operating performance is assessed as adequate, with a return-on-equity ratio of 2% in 2025 (2024: 3.8%). In 2025, AAGI’s loss ratio was negatively impacted by higher claims arising from earthquake and flood events. However, this was partially mitigated by an improved loss experience in health insurance, resulting from remedial actions taken by the company. AAGI’s operating performance remained profitable in the first half of 2026. The company’s stable investment income, which is comprised of mainly interest income, continues to support overall profitability. Prospectively, AM Best anticipates that AAGI will sustain an adequate operating performance level, supported by its growth strategy while maintaining prudent underwriting and pricing discipline.

AM Best assesses AAGI’s business profile as limited. AAGI is a non-life insurer operating in Thailand and ranks as the ninth largest general insurer, with a market share of 4%, based on gross premiums written in 2025. The company’s underwriting portfolio is well-diversified by line of business and distribution channels. However, it has limited geographic diversification as it only offers its products in Thailand. The company is projected to generate robust premium growth over the medium term, primarily driven by its business initiatives and the strengthening of its distribution channels.

The rating enhancement from Allianz Group reflects the explicit and implicit support AAGI receives from the group. AAGI receives explicit support in the form of reinsurance from Allianz Group. In addition, the company benefits from implicit support in areas such as corporate governance and investment management services, as well as access to shared resources and services across various business functions. Although AAGI’s operations account for a small portion of the group’s consolidated revenue, the company is considered strategically important to Allianz Group’s expansion strategy.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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