The ratings on Germany-based Allianz SE (AZSE) and related entities are based on the Allianz group's global franchise, with leading positions in major markets, very strong operating performance in its insurance and asset-management activities, and very strong financial flexibility. Following completion of the sale of its banking subsidiary, Dresdner Bank AG (Dresdner; A/Negative/A-1), to Germany-based Commerzbank AG (A/Negative/A-1) Allianz expects to hold a stake of close to 30% in the enlarged Commerzbank. This concentration continues to present a certain risk of earnings volatility and is an offsetting factor to the rating. Allianz boasts a highly diversified portfolio both by geography and segment, with market-shaping positions in major European markets and business lines. Revenue growth, however, has been disappointing, particularly in
