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, diverse and very strong earnings capacity, and very strong capitalization and financial flexibility. These strengths are partly offset by the group's exposure to challenging financial market conditions and our view that relatively weaker underwriting performance in the U.S., and to lesser extent in Germany, still weighs on its ongoing recovery. We believe AZSE's very strong competitive position continues to benefit from what we view as a highly diverse and resilient portfolio, both by geography and business segment, including life, property/casualty, and asset management, with market-shaping positions in major European markets and business
