Fitch ups Allianz to AA-

Fitch Ratings said it upgraded Allianz SE's insurer financial strength rating to AA- from A+ and its issuer default rating to AA- from A+. The main Allianz subsidiaries, including Allianz Versicherung AG, Allianz Lebensversicherung AG, Allianz Private Krankenversicherung AG, Allianz-Elementar Versicherung AG, Allianz Cornhill Insurance plc, AGF-Assurance Generales de France SA Vie, AGF-Assurance Generales de France SA IART, Lloyd Adriatico SpA, also are upgraded to insurer financial strength rating AA from AA-.

The outlook remains stable.

Fitch said it also assigned Allianz Finance II BV's €1.5 billion 4% senior notes an AA- rating. The bond is guaranteed by Allianz SE. All other outstanding senior notes are upgraded to AA- from A+ and subordinated notes to A+ from A.

The upgrade of Allianz to the rating level of its European peers reflects the publication of strong 2006 results together with good progress in the fundamental restructuring of the overall group, Fitch said. Other positive rating factors are the strong business position in its core European markets and strong diversification across various segments with significant cross selling potentials.

Partly offsetting rating factors are ongoing execution risks from the restructuring of Allianz's business and the overall softening of the non-life insurance cycle, the agency said. Fitch said it views Allianz group's capitalization currently as strong, but not yet fully supportive of the assigned rating level.

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