Allianz SE

The stable outlook indicates our expectation that, even after the Aviva Poland acquisition, Allianz's capitalization will recover to the 'AA' range by year-end 2021, according to our risk-based model. We also expect that, over the next two years, the group will maintain its excellent brand and reputation and continue to benefit from robust diverse income streams from its various global business activities. We could lower the ratings if, contrary to our expectations, Allianz's capitalization according to our capital model does not improve to the 'AA' level in either of the next two years. We might also consider lowering the ratings if the group's earnings, in particular the contribution from asset-management earnings, substantially weakened. We regard an upgrade as unlikely, mainly

...S&P Global Ratings believe Allianz SE remains competitive as a leading global insurance group. As one of the largest global multiline insurers, Allianz enjoys an outstanding brand. It benefits from a large diversification among various business lines and sectors, which besides traditional lines of insurance segments, includes industrial insurance business via Allianz Global Corporate & Specialty (AGCS) and trade-credit insurance via Euler Hermes. We expect Allianz's earnings will continue to benefit from strong asset management. Despite an impact from the COVID-19 pandemic of roughly 1.3 billion on the group's operating profit, the group achieved solid earnings in 2020 of about 6.8 billion. It benefits from lucrative asset management earnings, which contributed almost 2.9 billion, or 27% to the overall group's operating profit. We view Allianz's diversified business operations supported by its asset-management business, including PIMCO, as a key rating strength compared with other global...

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