Fitch said the action was taken over concerns that the current capital position of the group has been weakened considerably since the first half of 2002.
Capital has declined as falling asset values have impacted revaluation reserves and the group has maintained a significant exposure to equities. Allianz is expected to announce a full-year loss for 2002, which will be the worst loss in the group's history, said Fitch.
Over the longer term, Fitch expects the group to take advantage of the rising demand for long term savings and pension products. In addition, most units of the non-life insurance operations are producing very good underwriting results with technical profits being recorded in some territories.