FRANKFURT (Standard&Poor's) Nov. 14, 2002--Standard&Poor's Ratings Services said today that the Munich-based insurance group Allianz AG's (AA/Negative/A-1+) profitability, which is currently under severe pressure, underscores concerns about several challenges that Allianz faces. The insurer needs to address the effects of continued weak capital markets; restructure and improve earnings at subsidiary Dresdner Bank AG (A+/Negative/A-1); and restore the profitability of the property casualty business at some of its major foreign subsidiaries in the U.S. and France, as well as in its global industrial business. Allianz reported an overall net loss of €924 million in the first nine months of 2002, following a third-quarter loss of €2.5 billion. This result is mainly attributable to exceptional items of about
