Allianz Life annuities add to strong quarter
May 13, 2010 by Dan Browning
The Twin Cities insurer expects to expand.
Last update: May 12, 2010 – 9:29 PM
Allianz Life Insurance Co. of North America reported Wednesday that it earned a first-quarter operating profit of $110 million, which it attributed to strong operations, a growing asset base and stable capital markets.
“We continue to see solid top and bottom line results,” Allianz Life President and CEO Gary Bhojwani said in a prepared statement. “The combination of expanding sales and asset volume, along with rigorous pricing, has been the major driver of our operating performance so far.”
Allianz Life, a division of Allianz Group SE based in Golden Valley, has about 2,000 employees and expects to hire about 150 more this year, spokeswoman Laurie Bauer said in an interview.
Assets grew to about $90 billion in the first quarter, up about 16 percent over the first quarter last year. Premiums brought in $2.3 billion.
Fixed-index annuity premiums were up 27 percent over the first quarter last year, while variable annuities, which relaunched in August after a five-month hiatus, rose more than 40 percent over the last quarter of 2009.
Allianz Life had suspended the sale of most of its variable annuity products in March 2009, citing “market turbulence” that upset the balance of protection, income and stability of these products.
“We are constantly looking at opportunities to open new distribution relationships or complement our strong product offerings,” Bhojwani said. “This includes the launch of an innovative fixed-index annuity product developed together with our sister company, PIMCO.”
He also noted that the company’s variable-annuity products will get access to wider distribution networks beginning in June.