The insurer is now Australia’s third-largest property and casualty player after the 2025 deal.
Allianz Australia Insurance is expected to maintain capital adequacy above S&P Global Ratings’ 99.95% confidence level as the insurer integrates its acquisition of RAA Insurance.
The stronger capital position is mainly due to higher total adjusted capital relative to risk-adjusted charges.
This includes a capital injection from parent Allianz SE, strong equity reserves to absorb potential non-life losses and retained earnings from previous years.
The additional capital also supported Allianz Australia’s acquisition and incorporation of RAA Insurance from Royal Automobile Association of South Australia in 2025.
S&P expects Allianz Australia to manage the integration of RAA effectively, citing its alignment with Allianz’s group strategy and operations, previous acquisition experience and risk management framework, which includes oversight from the group.
The RAA acquisition has also strengthened Allianz Australia’s market position and business diversity.
With RAA’s presence in South Australia, Allianz Australia has become the third-largest property and casualty insurer in Australia, according to S&P.
The agency said Allianz Australia’s capital position is also supported by its low-risk investment portfolio and comprehensive reinsurance programme compared with peers.
S&P expects the insurer’s improving business risk profile, solid market position and broader business mix to support its competitive position.
It also expects Allianz Australia to continue receiving strong support from Allianz SE under almost all foreseeable circumstances because of the subsidiary’s close alignment with the group’s strategy and integrated operations.