Allianz SE's (AZSE's) competitive position is extremely strong, due to excellent geographic and product diversity. The group's core businesses have strong market positions in largely stable, major global markets. The operating profit contribution of non-life insurance and asset management subsidiary Pacific Investment Management Co. LLC (PIMCO) continues to diversify the group's earnings streams and enhances the group's business risk profile. We forecast AZSE's capital adequacy will remain in excess of the 'AA' level. The group's fixed-income portfolio is balanced and has generally very strong credit quality. The group has large investment risk particularly in Italy. The group's cash flows are strong and diverse, and it has proven capital market access. AZSE's well-established risk-planning processes and functioning strategic risk management continue
