MINNEAPOLIS--(BUSINESS WIRE)--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.
Allianz Life continued its focus on the community during the third quarter. This included:
- 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 www.standardandpoors.com.
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.