Standard&Poor's Ratings Services bases its rating on Italy-based composite insurer Allianz SpA on the company's "core" position within Germany-based parent Allianz SE (AA/Negative/A-1+), in accordance with Standard&Poor's group rating methodology. Under our methodology, we would normally align the rating on Allianz SpA with that on its parent. However, we cap our ratings on "core" insurance subsidiaries with 10% or more exposure to the jurisdiction of domicile at three notches above our rating on the related sovereign. (See "Nonsovereign Ratings That Exceed EMU Sovereign Ratings: Methodology And Assumptions," published June 14, 2011, on RatingsDirect on the Global Credit Portal.) In the case of Allianz SpA, the related sovereign is the Republic of Italy (BBB+/Negative/A-2; Unsolicited Ratings). We
