On May 17 Allianz announced that Allianz Global Investors US will plead guilty in the Structured Alpha investigations. While the incident showed governance deficits leading to a financial impact of roughly USD6 billion, we believe Allianz's overall capital and earnings strength remains very strong. We affirmed our 'AA' ratings on Allianz's core subsidiaries and its operating holding company, Allianz SE. The outlook on Allianz SE is stable because we expect the governance issues will be rigorously addressed, earnings from asset management will recover, and the group's capitalization will remain very strong over the next two to three years. On May 23, 2022, S&P Global Ratings affirmed its 'AA' long-term issuer credit and insurer financial strength ratings on the core operating
