The ratings on Germany-based Allianz AG (AZAG; AA-/Negative/A-1+), the holding company of the Allianz group (Allianz) and various core operating entities reflect the strong progress Allianz has made in its restructuring process and in improving profitability. The group's very strong competitive position further supports the rating. These strengths are partly offset by Allianz' profitability in life insurance, which is still not representative of its market position, and because more efficient integration between banking and insurance activities is only just starting to emerge. In addition, management has yet to demonstrate that it can sustain earnings momentum throughout the cycle. Allianz is demonstrating strong progress in improving business fundamentals. Its increased focus on value-based management and efficient capital management combined with improved
