Research Update: Allianz Global Corporate&Specialty SE Outlook Revised To Negative On Challenged Performance; Affirmed At 'AA'

We view Allianz Global Corporate&Specialty SE (AGCS) as an important and integral part of Allianz' business strategy, and we expect it to maintain its core status to the Allianz Group, and that the group will continue to support AGCS in improving its underwriting profitability. We believe, however, that underperforming portfolios and COVID-19 fallout may jeopardize the group's efforts to improve its underwriting results. We are therefore revising our outlook on AGCS to negative from stable and affirming our 'AA' ratings. The negative outlook reflects our view that we could lower the ratings by one notch over the next 24 months if we believed AGCS was unlikely to strengthen its operating performance in line with the group's targets. On

...- We view Allianz Global Corporate & Specialty SE (AGCS) as an important and integral part of Allianz' business strategy, and we expect it to maintain its core status to the Allianz Group, and that the group will continue to support AGCS in improving its underwriting profitability. - We believe, however, that underperforming portfolios and COVID-19 fallout may jeopardize the group's efforts to improve its underwriting results. - We are therefore revising our outlook on AGCS to negative from stable and affirming our '##' ratings. - The negative outlook reflects our view that we could lower the ratings by one notch over the next 24 months if we believed AGCS was unlikely to strengthen its operating performance in line with the group's targets....

Research Update