Allianz SE's (AZSE) competitive position is extremely strong, stemming from superior geographic and product diversity. PIMCO's growing operating profits enhance the group's earnings and risk profile. Core businesses are in largely stable, major global markets. Large investment risks exist in some markets, particularly Italy. Capital adequacy will likely remain in excess of the 'AA' level. The fixed-income portfolio is balanced and has generally very strong credit quality. Cash flows are strong and diverse, and capital-market access is proven. A well-established risk-planning process and functioning strategic risk management continue to optimize capital allocation and earnings and enhance the risk-return profile. AZSE has a track record of diligent strategic planning, strong execution, and sophisticated financial management. Because it is an operating holding
