The ratings on Germany-based Allianz SE (AZSE) and related core entities are based on the Allianz group's very strong competitive position, comparably resilient capitalization and earnings, and very strong financial flexibility. These strengths are partly offset by the risk of continued earnings volatility, likely to be mainly driven by investment exposures and potentially adverse non-life claims trends in light of the weak economic and financial market environment, as well as strategic challenges in the U.S. life insurance market. Standard&Poor's Ratings Services believes AZSE's very strong competitive position continues to benefit from what we view as a highly diversified portfolio, both by geography and segment, with market-shaping positions in major European markets and business lines. AZSE's capital adequacy has
