Allianz SE

The stable outlook is based on our expectation that over the next two to three years, Allianz will continue to benefit from resilient, diversified income streams from its various business activities around the globe, and will safeguard its strong reputation. We also anticipate that the group's capitalization will remain comfortably in the 'AA' range according to our risk-based capital model. Although unlikely at this stage, we could lower the ratings if the group's income streams, against our expectations, display materially higher volatility; for instance, if the contribution from asset-management earnings substantially weakened. We might also consider lowering the ratings if the group's capitalization dropped below the 'AA' range for a prolonged time. We regard an upgrade as remote over the

...Allianz SE is one of the leading global insurance groups. Allianz ranks among the larger global multiline insurers, and we expect it will maintain its leading market positions in countries such as Germany, France, and Italy. Furthermore, Allianz enjoys earnings diversification from its solid portfolio of business lines across geography, which includes specialty lines such as industrial lines insurance via Allianz Global Corporate & Specialty (AGCS) and trade-credit insurance via Euler Hermes, in addition to traditional lines of insurance business. We expect Allianz to maintain robust operating performance thanks to diversified income streams.In 2019, Allianz reported a record high operating profit of almost 12 billion, despite weak technical underwriting results stemming from AGCS. Besides material investment gains, Allianz benefits from its strong asset management business including PIMCO, which has contributed more than 20% to overall group's operating profit in 2019, in line with recent...

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