Allianz Life Reports Strong Year-to-Date Profit
Challenging Interest Rate Environment Dampens Sales in Third Quarter
MINNEAPOLIS -- November 09, 2012
Minneapolis-based Allianz Life Insurance Company of North America (Allianz
Life®) posted operating profit of $559 million through the third quarter of
2012 compared to an operating profit of $379 million through the same period
in 2011. The strong operating performance reflects solid underlying results
driven by diligent pricing, spread management and expense discipline.
Additionally one-off gains on the disposal of bonds have also contributed to
the increase in operating profit.
Total assets under management reached $103.3 billion at September 30, 2012,
representing a 12% increase from $92.4 billion at September 30, 2011. Strong
returns on investments helped fuel this growth.
Persistent low interest rates continue to challenge sales volumes. Allianz
Life reported premiums of $7.4 billion through the third quarter of 2012,
compared to $8.3 billion through the third quarter 2011. Fixed annuity premium
of $4.2 billion was down 16% year-to-date compared to $5.1 billion in 2011 and
variable annuity premium of $2.7 billion was down 6% from $2.9 billion in
2011. Life insurance sales hit $48 million through the third quarter, up 109%
from $23 million for the same period in 2011.
“The year-to-date operating profit is strong, but challenges posed by low
interest rates are significant and demand innovative and sustainable product
offerings to achieve future success,” said Allianz Life President & CEO Walter
White. “We are actively managing the current environment and have launched new
products and enhanced our existing products to lay the groundwork for
continued growth in current and new markets.”
In October 2012, Standard &Poor’s affirmed the company’s financial strength
rating as AA (very strong) with a negative outlook. S&P’s AA rating is the
third highest out of 21 possible ratings. S&P based its rating on several
factors including, Allianz Life’s sound operating results, market leadership
standing in fixed and fixed index annuities and the quality of its investment
Allianz Life continued its focus on the community during the third quarter.
*A gift of $600,000 to promote financial literacy among Twin Cities youth
by funding a multi-year program with BestPrep and Junior Achievement.
*Employees raised more than $159,000 in Allianz Life’s annual Driving to
Donate Charity Golf Tournament that supports the Alzheimer’s Association
MN-ND, a non-profit that seeks to eliminate Alzheimer’s disease through
research, brain health, early intervention, and support.
*Local students were awarded $30,000 in scholarships for post-secondary
educational costs through the company’s Legacy Scholarship Program.
About Allianz Life
Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best
Companies to Work For in 2012, has been keeping its promises since 1896.
Today, it carries on that tradition, helping Americans achieve their
retirement income and protection goals with a variety of annuities and life
insurance products. As a leading provider of fixed index annuities, Allianz
Life is part of Allianz SE, a global leader in the financial services industry
with 142,000 employees worldwide. More than 78 million private and corporate
customers rely on Allianz knowledge, global reach, and capital strength to
help them make the most of financial opportunities.
Allianz Life Insurance Company of North America offers insurance and annuities
in all states except New York. In New York, products are issued by Allianz
Life Insurance Company of New York.
For a full description of how Standard & Poor's® Insurer Financial Strength
Rating categories are assigned and to obtain current ratings refer to
A Standard & Poor's Insurer Financial Strength Rating is a current opinion of
the financial security characteristics of an insurance organization with
respect to its ability to pay under its insurance policies and contracts in
accordance with their terms. Insurer Financial Strength Ratings are based on
information furnished by rated organizations (or obtained by Standard & Poor's
from other sources it considers reliable). Insurers rated AA have Very Strong
financial security characteristics.
Allianz Life Insurance Company of North America
Sara Thurin Rollin, 763-765-6703
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