The ratings on Germany-based Allianz SE (AZSE) and related core entities are based on Standard&Poor's Ratings Services' view of the Allianz group's very strong competitive position, operating performance, and financial flexibility. These strengths are partly offset by AZSE's exposure to difficult economic conditions, particularly sustainably low interest rates in its core market Germany and elevated credit risk in Italy. These challenges dampen the group's capitalization as measured by our risk-adjusted capital model. AZSE's very strong competitive position is a key strength to the group ratings. In our view, AZSE's competitive position is somewhat stronger than the global multiline insurer average. This is because it is one of the most diversified groups geographically and by business line, with particularly
