Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

Allianz Life’s operating profit up 37 percent in 2012

By Warren S. Hersch

X
Your article was successfully shared with the contacts you provided.

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.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.