The ratings on Allianz AG and all core entities of the Munich-based Allianz Group reflect the group's extremely strong business position in Europe and other markets, extremely strong capitalization, superior financial flexibility, and strong profitability. Partially offsetting these strengths will be the more aggressive future use of capital. Extremely strong business position: Allianz enjoys an enviable position in the German life and nonlife markets, in which it is clearly the market leader. Allianz also has top-five positions in Italy, Spain, Switzerland, Korea, and Austria. The acquisitions of Pimco Advisors and Nicholas-Applegate place Allianz among the top-eight asset managers globally. Superior capitalization, both in absolute terms and relative to Allianz's business requirements: Allowing for the release of deferred tax provisions in
