Allianz Life Reports Financial Results for 2012

Minneapolis-based Allianz Life Insurance Company of North America (Allianz Life) today reported operating profit of $586 million for its 2012 financial year, an increase of 37% from $428 million in 2011. Growth in operating profit was driven by disciplined pricing, a growing asset base, a commitment to expense management, and realized gains on the company’s conservative and stable investment portfolio. Operating profit is reported on the International Financial Reporting Standards basis and includes earnings from recurring business operations.

In addition, Allianz Life also improved its capital position, reporting a 16 percentage point increase in regulatory risked-based capital (RBC) ratio – from 361% in 2011 to 377% in 2012.

Allianz Life reported 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% from $37 million in 2011 to $65 million in 2012. 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.

“Allianz Life is financially strong, which is what Americans expect when working with us to help grow and protect their retirement savings. We posted very strong operating profits and continued to deliver innovative products, despite low interest rates,” said Allianz Life President & CEO Walter White. “Our focus on financial strength, as demonstrated by our improved capital ratio, places us as one of the strongest financial companies in our marketplace.”

U.S. rating agencies recognized Allianz Life’s commitment to strengthening its capital base. The 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.

In addition to the solid 2012 financial results, the company earned distinction as:

#1 FIA Leader – Allianz Life was named the top seller of fixed index annuities for 13 consecutive quarters (based on sales), according to AnnuitySpecs.com, Indexed Sales & Market Report, 3Q 2012;

FORTUNE Magazine Best Places to Work For – Named to FORTUNE magazine’s “100 Best Companies to Work For” list, ranking 59th as one of only two Minnesota companies to earn this distinction;

Superior Service – Awarded 2012 Excellence in Sales Support because of the company provided “far superior” sales support compared to others in the financial services industry by DALBAR, the nation’s leading financial services market research and consulting firm;

Top Workplace – Allianz Life received the Minneapolis Star Tribune Top Workplace award (June 2012) and the Minneapolis/St. Paul Business Journal Best Places to Work award (August 2012);

Financial Literacy Focus – Received the Humanitarian Award in January 2012 by BestPrep for the company’s commitment to promoting financial literacy;
Community Giving – Donated $1.8 million to local organizations in 2012 primarily focused on senior services and financial literacy programs; and
Retirement Leader – Continued thought leadership in baby boomer retirement insights through a 2012 update to the Allianz American Legacies Study.