Fitch places Allianz on negative outlook

Fitch Ratings has assigned a `AA' Insurer Financial Strength rating and a `AA-' long-term issuer rating to Allianz Group. The ratings outlook is negative.

Fitch said the ratings action reflects Allianz Group's strong position and reputation as a market leader within many of the sectors in which it operates.

Strong operating performance from the insurance operations during difficult conditions in 2001 and 2002 show the continuing solidity of its brand names in key markets.

In the first six months of 2002 Allianz Group achieved net income of £1bn, an increase of 15.1 percent from the corresponding period last year.

The historically very strong capital position of the group was weakened with the acquisition of Dresdner, which utilised a large part of the excess capital held by Allianz.

Fitch concluded that the agency's negative outlook reflects the expected weakening of the capital base as a result of ongoing capital market volatilities.