A.M. Best Affirms Allianz' Financial Strength and Debt Ratings in Proposed Acquisition of Dresdner Bank.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--April 2, 2001

A.M. Best Co. has affirmed the A++ (Superior) financial strength and "aaa" senior debt ratings of Allianz group following today's announcement that it will acquire the outstanding shares of Dresdner Bank A.G.--which it does not already own--in a stock and cash transaction valued at approximately Euro $30 billion. Through an elaborate transaction structure which will unravel a portion of its cross shareholdings in a number of Germany's blue chip financial groups, Allianz will only require a modest amount of external funding at closing. As a result, the transaction will modestly affect the company's financial leverage in the short term.

Under the proposed structure, Allianz and Munich Re will reduce their cross ownership to slightly above 20% by exchanging 4% of the shares they hold in one another. Allianz will also reduce its holdings in HypoVereinsbank by selling its 13.5% ownership in this banking institution to Munich Re in exchange for Munich Re's ownership in Dresdner. The transaction will also allow Allianz to consolidate its ownership of Allianz Leben and Allianz Sachversicherungsgruppe by purchasing the shares in these companies that it does not own from Munich Re.

The acquisition is expected to close in July 2001, subject to various regulatory approvals. When finalized, both Allianz and Munich will either own or control a leading German banking organization and will enjoy access to the respective banks' corporate clients, their extensive retail distribution networks and asset management operations.

A.M. Best views the transaction positively from a strategic standpoint as it will significantly extend Allianz A.G.'s reach into the growing global financial services marketplace. The acquisition of Dresdner will provide enhanced distribution capabilities in its home market in Germany and will better position Allianz to take advantage of the rapidly growing private pension market as a leading provider of retail and institutional asset management and retirement savings products.

The transaction may also provide potential synergies over the longer term given the strength of Dresdner's corporate banking activities and Allianz' leading market position as an industrial insurer. The combined organization, which will rank among the world's leading diversified financial services groups, should provide a strong platform for growth both organically and through acquisition in Germany as well as in the international arena.

Despite the magnitude of the transaction, A.M. Best anticipates that Allianz will continue to maintain its exceptional financial flexibility, as a portion of its substantial unrealized gains from its German industrial holdings will be used to finance the proposed acquisition. Although some external funding is anticipated, the level of financial flexibility maintained by Allianz--as reflected in its financial leverage and cash coverage ratios--will remain well within A.M. Best's expectations for the company's current ratings.

This complex transaction is part of an overall industrial restructuring that has been anticipated by A.M. Best as a result of recent German tax reform. Beginning in 2002, there will no longer be taxes on capital gains from the disposal of equities. It is expected that additional strategic restructurings and acquisitions will follow as various financial institutions re-position themselves for a more competitive environment.

The A++ (Superior) group financial strength rating applies to Allianz AG Consolidated and its core property/casualty, life/health and credit group members. The list of the group members can be accessed on the A.M. Best Web site at: http://www3.ambest.com/ratings/amblist.asp

      The following debt security ratings were affirmed:

         Allianz Finance B.V. II
      --  "aaa" rating on EUR 2 billion 1.25% guaranteed exchangeable
        bonds, due 2004

         Allianz Finance B.V.
      --  "aaa" rating on EUR 767 million 6% guaranteed, due 2003
      --  "aaa" rating on EUR 767 million 5.75% guaranteed bonds, due
         2007
      --  "aaa" rating on DEM 2.0 billion 3% guaranteed exchangeable
         bonds, due 2003
      --  "aaa" rating on EUR 1.6 billion 5% guaranteed bonds, due 2008
      --  "aaa" rating on CHF 1.5 billion 3% guaranteed bonds, due 2005
      --  "aaa" rating on DEM 1.7 billion 2% guaranteed exchangeable
         bonds, due 2005

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.