Allianz Life Insurance Company of North America reported on Thursday a 37 percent year-over-year increase in its operating profit.
Allianz Life, Minneapolis, discloses in 2012 financial results an operating profit of $586 million for the financial year, an increase of 37% from the $428 million posted 2011. These figures include earnings from recurring business operations.
In a press statement, the company attributes the rise to “disciplined pricing, a growing asset base, a commitment to expense management, and realized gains on the company’s conservative and stable investment portfolio.
Allianz Life also improved its capital position, reporting a 16 percentage point increase in regulatory risked-based capital (RBC) ratio to 377% in 2012 from 361% in 2011.
The company reports total premium (new sales and recurring premiums) of $9.4 billion for 2012, down 14% from the prior year total of $10.8 billion. Fixed annuity sales declined 16% to $5.5 billion in 2012 compared to $6.5 billion of premium in 2011.
Variable annuity sales decreased 12% to $3.3 billion of premium in 2012 compared to $3.8 billion in 2011. Life insurance sales increased 75% to $65 million in 2012 from $37 million in 2011
The company states that sales results “reflected the impact of market conditions, pricing discipline, and an increasingly focused distribution strategy.”
At the close of 2012, Allianz Life’s assets under management increased 8% to $102.9 billion, compared with $95.3 billion at the end of 2011.
U.S. rating agencies sustained the company’s high financial strength ratings throughout 2012, which have remained unchanged throughout and after the 2008-2009 financial crisis. In October 2012, Standard & Poor’s affirmed Allianz Life’s rating as AA (very strong); this is the third highest out of 21 possible ratings.
On Oct. 4, 2012, Standard & Poor’s affirmed the financial strength rating of Allianz SE of “AA” with a “negative outlook” which applies to Allianz SE and other entities, including Allianz Life Insurance Company of North America. Allianz SE remains one of the highest rated insurance companies in the world.