Minneapolis-based Allianz Life Insurance Company of North America posted operating profit of $381 million for the first half of 2012 compared to profit of $315 million during the first six months of 2011. A growing asset base combined with gains realized on investments was the driving force behind the strong profit performance.
Total assets under management reached $99.6 billion, representing 9 percent growth compared to a year ago. Sustained customer balances coupled with positive investment returns generated this growth. New product offerings during the period enhanced Allianz Life's position as the leading provider of fixed index annuities in the United States, according to AnnuitySpecs.com.
Historically low interest rates continue to challenge performance as sales volumes during the first half of the year were mixed. Allianz Life reported premiums of $5.2 billion for the first half of 2012, compared to $5.6 billion in the first half of 2011. Fixed annuity premium of $2.9 billion was down 15 percent year-to-date compared to 2011 and variable annuity premium of $2.0 billion was flat. Sales of life insurance were $31 million, up more than 100 percent year-to-date from 2011.
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"We are pleased with our year-to-date operating profit, but remain vigilant and are actively managing today's unique environment for life insurers," said Allianz Life President & CEO Walter White, in a release.
"While current market conditions pose a challenge, we continue to capitalize on an excellent opportunity to provide annuities and life insurance that Americans can rely on to help protect and grow their retirement income."
Financial ratings agencies have recently affirmed Allianz Life's financial strength rating. In June, A.M. Best affirmed the company's financial strength rating as A (Excellent) and assigned a stable outlook. The A.M. Best rating of A (Excellent) is the third highest of 16 possible ratings.
Allianz Life was also recognized as a top Minnesota employer during the first half of 2012. Allianz Life nationally placed No. 51 on the FORTUNE 100 Best Companies to Work For list, making it the highest ranking Minnesota company on this prestigious list of employers. Similarly, the Minneapolis Star Tribune named Allianz Life No. 13 among the top 100 Workplaces when compared to other large companies in the state of Minnesota.
"Our employees continue to be the driving force behind our financial performance and community recognition," added White. "Their dedication and commitment allows Allianz Life to maintain our strong market position even in tough market conditions."
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