One of the largest global industrial lines insurers, based on gross premiums. The second largest property/casualty (P/C) insurer within the Allianz group, contributing 15% of the group's P/C premiums and 7% of P/C operating profit, and the group's dedicated carrier for global corporate and specialty insurance. Well-established brand with a global footprint and well-diversified operations. High insurance capacity, pressure on rates in the industrial lines market, and portfolio pruning measures in the U.S., which constrain overall premium development. Decline in capitalization, based on active stringent capital management within the Allianz SE (AZSE) group. Adverse effect on technical profitability as a result of poor performance of now consolidated Fireman's Funds, although improving. Elevated potential for volatility of capital and earnings, due