Allianz Life Reports Strong Year-to-Date Profit

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 portfolio.