Progress in executing a number of strategic and cost-cutting initiatives; An improved earnings outlook; Improving capitalization supported by increasing retained earnings and enhanced risk-management processes; and A very strong business position. Implementation of turnaround program still presents an execution risk and is partly dependent on a further improvement in economic conditions; and Management remains challenged to extract the full value of its bancassurance model. The ratings on Allianz AG (AZAG; AA-/Negative/A-1+), the holding company of the Allianz group (Allianz), reflect the progress in the group's restructuring process, an improved earnings outlook, and improved capitalization. The ratings are further supported by the group's very strong business position. These strengths are partly offset by the continued magnitude of challenges that management faces
