Allianz SE

The stable outlook indicates our expectation that Allianz will solve the governance shortcomings, and the earnings from asset management will completely recover in 2023. We also expect that Allianz will maintain very strong capitalization over the next two years, and maintain its excellent brand and reputation as it continues to benefit from robust diverse income streams from various global business activities. We could lower the ratings if, contrary to our expectations, Allianz' capitalization, according to our capital model, drops sustainably below 'AA'. This could happen under the following scenarios: If the Russia-Ukraine conflict prompted substantial macroeconomic turbulence, which resulted in material investment impairments; or Dividend payouts or share buybacks were aggressive. We might also consider lowering the ratings under these

...S&P Global Ratings expects Allianz will maintain its standing as a leading global insurance group. Despite the governance issues at its subsidiary, Allianz Global Investors US, 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. We anticipate that Allianz's asset-management business will recover and once again be a significant earnings contributor from 2023 onward after material payments of almost $6 billion related to the Structured Alpha investigations (see "Allianz '##' Rating Affirmed Despite Governance Deficits; Outlook Stable," published May 23, 2022). We anticipate Allianz will continue to generate sound profits, although lower than previously expected due to claim payments related to the Structured Alpha Funds investigations. We consider Allianz's...

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