The ratings on Allianz AG (AZAG; AA-/Negative/A-1+), the holding company of the Allianz group (Allianz), reflect the progress in the group's restructuring process, an improved earnings outlook, and improved capitalization. The ratings are further supported by the group's very strong business position. These strengths are partly offset by the continued magnitude of challenges that management faces in implementing its turnaround program. Allianz is undergoing an ambitious restructuring program, which aims to release the group's full earnings potential by the end of 2005. Standard&Poor's believes that Allianz' operational efficiency and control has improved significantly during 2003. Expectations are that 2003 has marked a turning point for some of the group's major restructuring cases, namely U.S.-based Fireman's Fund Insurance Co.,
