The ratings on Germany-based Allianz SE (AZSE) and related entities are based on the Allianz group's (Allianz) very strong operating performance and a positive view of management combined with the expectation that Allianz will continue to efficiently execute its strategy. Further supporting factors are a very strong competitive position and very strong financial flexibility. Partly offsetting these strengths is Allianz's capitalization, which is below the current rating level and the relatively weaker creditworthiness of Dresdner Bank AG (Dresdner: A+/Positive/A-1). Operating performance has improved significantly since 2002 with underlying operating profit surging to a record €10.0 billion (adjusted for normalized natural catastrophe losses) at year-end 2006. Net income reached €7.0 billion, yielding an ROE of 16%. Performance is becoming more broadly
