Moody's has placed Allianz SpA on review for downgrade in the wake of the review for downgrade on the Italian government's Baa2 debt rating.
Concurrently, the rating agency has affirmed the Baa1 insurance financial strength ratings of Assicurazioni Generali SpA and Generali Italia SpA. The outlook remains stable.
Moody's believes that the three insurance companies' key credit fundamentals — asset quality, capitalization, profitability and financial flexibility — are linked to Italy's economic and market conditions.
The placing of Allianz SpA's insurance financial strength rating on review for downgrade reflects the company's direct exposure to Italian sovereign risk in terms of both investment portfolio and business profile.
Moody's said the affirmation of Assicurazioni Generali and the stable outlook largely reflects the Generali group's diversification outside Italy. In taking ratings actions on Generali Italia, the rating agency considers that Generali Italia's rating benefits from implicit support from Assicurazioni Generali.
