|[November 09, 2012]
Allianz Life Reports Strong Year-to-Date Profit
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
"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
n 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 (News - Alert) Cities
youth by funding a multi-year program with BestPrep
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
Local students were awarded $30,000 in scholarships for post-secondary
educational costs through the company's Legacy Scholarship Program.
About Allianz Life
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
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
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