The ratings on Germany-based Allianz SE (AZSE) and related core entities are based on the Allianz group's very strong competitive position and continuously resilient and diversified earnings capacity, as well as comparably strong capitalization and very strong financial flexibility. These strengths are partly offset by the group's exposure to challenging financial market conditions and Standard&Poor's Ratings Services' view that the group's underwriting performance is not fully reflective of its very strong competitive positions in several key markets. We believe 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 proven resilient throughout
