"How optimistic are you when you think about your future and the future of your country?" Allianz, together with market researcher GfK, has investigated this question in a new Allianz Confidence Study. One result of this latest study: Respondents are most concerned about the situation on the international financial markets, for both their country and personal lives. In addition, people are most worried about their state pensions in light of the financial crisis.

More than 10,000 respondents were interviewed in nine countries: Austria, France, Germany, Greece, Hungary, Italy, Russia, Switzerland and the USA. In each country, a representative survey asked 1000 men and women aged 15 and older* to assess their personal situation and the situation of their country, today and over the next year. In addition, Allianz asked for their opinions about important issues that play a role for the future of their country and their personal lives.

As with Allianz's first international Confidence Study, published on June 2, 2008, respondents of this study continue to be more confident about their personal situation today and over the next 12 months, than they are about the current and future situation of their country.

Based on latest results, more than half of respondents in Switzerland (79 percent), the USA (63 percent), Germany (60 percent), Austria (59 percent), and Greece (56 percent) have a "very good or rather good" view on their current personal situation. When asked to assess their personal situation over the next 12 months, the Swiss (77 percent), Germans (61 percent) and Austrians (56 percent) are most confident.

In contrast to their personal situations, respondents are significantly more worried about their country's current overall situation. Hungary is most skeptical; only 4 percent have a positive view. In both France and Italy just 10 percent are positive, followed by Russia (15 percent) and the USA (17 percent). Only one-fifth of those surveyed are positive in Greece (20 percent) and Germany (21 percent). Among the positive set, Austria ranks second (29 percent). The Swiss are most positive, with more than one-half (54 percent) having a "very good or rather good" view on their country's current situation.

Regarding the country situation over the next 12 months, almost every other resident of Switzerland is also confident about his country's future (47 percent); Austria again ranks second (30 percent). Elsewhere in Europe, the mid-field consists of Germany and Russia (24 percent each), Italy (23 percent), and Greece (20 percent). Yet, in other words, less than one in four people in these countries is optimistic about his/her country's future.

Only 18 percent of Americans are optimistic about the future of the USA. In fact, just days preceding the U.S. presidential election, 75 percent of Americans were "rather or very concerned" about their country's future. In Hungary, only 15 percent of respondents are confident.

Among the countries which participated in the first Confidence Study (Austria, France, Germany, Greece, Italy, Russia), respondents feel somewhat less confident about their country's future compared to earlier in the year. However, Italians are significantly more concerned than in May; 23 percent are "very confident or rather confident" (minus 12 percentage points), compared to 35 percent previously. Regarding their personal future, both Italians (41 percent, or minus 12 percentage points) and Greeks (46 percent, or minus 11 percentage points) are significantly less confident than in May.

Of the issues investigated in the study that play role in the future of a country over the next 12 months, people are clearly most worried about the situation on the international financial markets, followed by the economy, jobs, and state pensions. Switzerland is the only country among the study participants which is moderately optimistic: one in three Swiss is confident about job security (32 percent) and the state-run pension system (31 percent), while one in four is optimistic about the country's general economic situation (26 percent).

However, only 15 percent of respondents in Switzerland are confident about the situation on the financial markets. Lack of confidence about the financial markets is the general mood among all of the countries: Hungary (14 percent), Greece and Italy (each 13 percent), Germany (12 percent), France (11 percent), Austria (10 percent). The USA (7 percent) and Russia (6 percent) are least confident.

Among the countries which participated in the first Confidence Study, respondents are now less confident about their country's economy and jobs over the next 12 months, than they were in May 2008. The difference is most dramatic for the Austrians; only 14 percent are confident about the general economic situation in Austria, compared to 36 percent when asked in May (minus 22 percentage points). Regarding job security, just 13 percent of Austrians are confident, compared to 32 percent in May (minus 19 percentage points). Germany, France, Italy and Russia show a similar, albeit lesser negative trend, for their 12-month views on the economy and jobs.

When asked about their confidence in issues that play a role in their personal future, respondents are clearly also most concerned about the financial markets affecting their personal situation. Only one in four Swiss (24 percent) is "very confident or rather confident" regarding the financial market situation and his/her personal situation over the next 12 months. Less than one in five Greeks is confident (17 percent), followed by Hungary and Italy (each 15 percent). Here, as with financial markets affecting a country's future, the USA (10 percent) and Russia (7 percent) bring up the rear.

The survey's final question, "Is the crisis on the financial markets affecting your personal situation?", identified clear concern about their own state pensions in all nine countries. In Greece, two out of three are concerned (66 percent), followed by the USA (63 percent), Hungary (61 percent), and France (59 percent). Just half are concerned in Russia (54 percent) and Italy (52 percent). Least concerned about their state pensions in light of the crisis are the Swiss (31 percent), followed by Austrians (42 percent) and Germans (44 percent).

Concern about their various investments, such as life insurance policies, stocks and mutual funds, is comparatively low, but still perceptible throughout several countries. Overall, Switzerland and Germany are least concerned. Americans, Greeks and Russians are most worried.

The study also revealed that the financial crisis is affecting the investment plans of people in all countries; respondents are cautious. Many people plan to keep a greater amount of cash reserves in the bank as a result of the crisis, led by the Americans (54 percent), the Swiss and Austrians (each 43 percent).

Over the next 12 months, the majority does not plan to invest more strongly in the various investment categories. However, a comparatively large number of respondents in the USA, true to the country's equities culture, plan to invest more strongly in stock (17 percent) and mutual funds (18 percent) during the next year. Respondents in Greece (19 percent), Italy (17 percent) and the USA (13 percent) plan to invest more strongly in safer products such as government bonds; Russians (17 percent), Americans (15 percent), Greeks and Italians (14 percent each) and the French (11 percent) plan to invest more strongly in life insurance.

Greatest sources of optimism are found in respondents' own home and family environment over the next 12 months: 92 percent of the Swiss, 88 percent of Germans, 86 percent of Austrians, 78 percent of the French, and 71 percent of Russians are confident about their homes. This is unchanged compared to May 2008. On family, partners and children, the Swiss are most confident (80 percent), followed by the Germans (70 percent), and the Austrians and Russians (68 percent each).

The confidence of individuals and their expectations about the future are of critical importance to Allianz, as an insurer and financial service provider. The representative Allianz Confidence Study was conducted in October and November of this year, in cooperation with GfK Market Research. The study was based on telephone interviews with 1,000 respondents each over the age of 15* in each of the following countries: Austria, France, Germany, Greece, Hungary, Italy, Russia, Switzerland and the USA.

The first international Confidence Study was conducted in May 2008 and included Austria, Croatia, France, Germany, Greece, Italy, Portugal, Russia, Spain and Turkey.

* _{In Russia, 2,398 interviews; In the USA, age 18 or above. Interviews were conducted by GfK Market Research in all countries, except Hungary, Germany and Russia.}

As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.