Allianz SE

The stable outlook indicates our expectation that, according to our risk-based model, Allianz's capitalization has slid below the 'AA' range but will recover by end-2022. We anticipate that, over the next two to three years, the company will manage its capital adequacy tightly to the 'AA' range, with some potential oscillation between the lower end of the 'AA' range and the higher end of the 'A' range, depending on market conditions. We also expect Allianz will continue to demonstrate its willingness and ability to replenish capital to the 'AA' level shortly after any dip. In our view, Allianz is likely to solve its governance deficits, and earnings from its asset management operation are forecast to completely recover in 2023, and

...S&P Global Ratings anticipates Allianz will remain a leading global insurance group. Allianz enjoys leading positions in several markets around the globe, supported by an outstanding brand despite the governance issues at its subsidiary, Allianz Global Investors US. 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 expect Allianz's earnings will recover in 2023 and 2024 after a decline in 2022. 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 is evident in constantly strong operating results. However, we expect that extraordinary claims payments linked to Allianz Global Investors' Structured Alpha Funds will lead to a reduced net income of about 6 billion for 2022 compared with our expectation of about 8...

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