Allianz Insurance Singapore Pte. Ltd.

We continue to base our higher anchor for AIS on its brand strength and reputation in the Singapore market to attract new business from clients and intermediaries. Additionally, healthy capital levels should enable the insurer to withstand potential volatility in the initial years of operation. The stable outlook on AIS reflects our rating outlook on Allianz SE. It also reflects our view that AIS will maintain our assessment of its stand-alone credit (SACP) and remain a strategically important subsidiary of the group over the next 12-24 months. We believe AIS will gradually build its competitive position in Singapore while maintaining healthy capital buffers over the next two years. The insurer's prospective capitalization should cushion stresses in operating performance arising from

...Allianz Insurance Singapore Pte. Ltd. (AIS) ratings benefit from group support owing to the insurer's strategically important subsidiary status. The insurer should continue to play an important role in supporting the Allianz group's growth strategy to better serve retail clients, small and midsize enterprises (SME), and midsize corporate markets within Singapore and the broader Southeast Asia region. The group plans to make Singapore one of its key financial centers within the region. As such, we expect AIS to continue to benefit from the group's global expertise and regional focus. AIS capitalization will remain healthy and supportive of its business growth plans. We base our view of the strong capital position on sustained timely capital injections from the group in alignment with its interim growth targets, a gradual reduction in bottom-line losses, conservative investments, and no dividend repatriations over the next three years. We expect AIS' modest business presence and expense efficiencies...

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