Allianz SE

The stable outlook is based on our expectation that the group's capitalization will remain in the 'AA' range over the next two years, according to our risk-based model. We also expect that, over the next two years, Allianz will maintain its excellent brand and reputation and continue to benefit from robust and diverse income streams provided by its various global business activities. We could lower the ratings within the next 24 months if, contrary to our expectations, Allianz's capitalization, according to our capital model, drops sustainably below the 'AA' level. This could happen, for example, if it became necessary to book additional provisions associated with the investigation into Allianz Global Investors' Structured Alpha Funds, or if the Russia-Ukraine conflict prompted

...S&P Global Ratings expects Allianz will maintain its standing as a leading global insurance group. Allianz has an outstanding brand that enjoys leading positions in several markets around the globe. The company also benefits from healthy diversification across business lines and sectors, including Allianz Global Corporate & Specialty (AGCS) and trade-credit insurance, via Allianz Trade. Allianz's asset management business remains a significant earnings contributor despite the ongoing Structured Alpha Funds investigations. We anticipate Allianz will continue to generate sound profits, although its claim provision for Structured Alpha Funds may be insufficient. We consider Allianz's diversified earnings streams, supported by its asset-management business (including PIMCO), to be a key rating strength compared with other global insurance groups. This was evident in its strong operating results for 2021. Nonetheless, we note that net income was hampered by an extraordinary claim provision linked...

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