Allianz SE's (Allianz) performance deteriorated on a y-o-y basis in 1Q 09 and the results were below our expectations. However, we are encouraged that the company has maintained its profitable position despite weakness in credit markets. We also believe that the recent recovery in financial markets will provide support to the company’s top-line going forward. Although earnings have been severely impacted by the financial crisis…

Contraction in the economies from which the company generates the majority of its premiums (the US and the UK) and volatility in global financial markets are expected to continue to impact performance in the near to medium term. On 31 March 2009, while S&P;’s affirmed Allianz’s AA ratings for long term counterparty credit and issuer financial strength with…

Allianz SE’s (Allianz) common stock price has declined significantly since our last update report reflecting general weakness in global financial markets coupled with the anticipation of a loss in 4Q 08. However, we believe that the loss in 4Q 08 will primarily reflect impairments from Dresdner Bank, which the company has divested. Excluding Dresdner Bank, we expect the company to report a profit from continuing operations. Considering the weak economic outlook…