Allianz Life Reports Strong Financial Results for 2015
February 20, 2016 by Business Wire
MINNEAPOLIS–(Business Wire)–Minneapolis-based Allianz Life Insurance Company of North America (Allianz Life®) today reported operating profit of $932 million for its 2015 financial year, an increase of 6% from $876 million in 2014 and the fourth consecutive year of operating profit growth. The strong result was driven by disciplined business management and the continued growth and stability of the fixed index annuity (FIA) business. Operating profit is reported on the International Financial Reporting Standards basis and includes earnings from recurring business operations.
Total premium (new sales and recurring premiums) reached $11.6 billion in 2015, down 26% from $15.7 billion in 2014. This decline was within expectations due to an unusually strong 2014. Including sales results from 2012 ($9.4 billion) and 2013 ($9.7 billion), total premium has experienced an annual growth rate of 7% over the past four years. In 2015, fixed annuity and fixed index annuity sales were $8.8 billion, variable annuities generated $2.0 billion of premium, and life insurance sales were $75 million.
In 2015, Allianz Life provided a total of $2.4 billion in benefit payments that supported policyholders’ life insurance protection, retirement income and other financial objectives. At the close of 2015, Allianz Life’s assets under management were at $121 billion, nearly level with the prior year ($122 billion).
“Our results in 2015 speak to ongoing consumer demand for guaranteed income products that can provide Americans with more confidence about achieving their financial and retirement goals,” said Allianz Life Chief Financial Officer Bill Gaumond. “With strong premium and operating profit, focused risk management discipline and innovative product offerings, we are well positioned to deliver consistent value to our consumers, distributors and our shareholder.”
Allianz Life has maintained strong financial and credit ratings for several years, including through the financial downturn in 2008-2009. In 2015, A.M. Best upgraded the company’s financial strength rating to A+ (Superior) from its previous A rating, and also upgraded its issuer credit ratings from “a+” to “aa-.” The A.M. Best rating of A+ (Superior) is the second-highest of 16 possible ratings. Standard & Poor’s affirmed Allianz Life’s rating as AA (Very Strong) – the third-highest out of 21 possible ratings. The outlook for all ratings is stable.
Recognition and Awards
In addition to solid 2015 financial results, Allianz Life earned the following distinctions in 2015:
- Named #1 Fixed Index Annuity (FIA) Leader for 25 consecutive quarters (based on sales), according to Wink’s Indexed Sales & Market Report, 3Q 2015;
- Ranked 68th nationally on FORTUNE magazine’s “100 Best Companies to Work For” in 2015, the top Minnesota company on the list;
- Named a Minneapolis Star Tribune Top Workplace for the sixth consecutive year;
- Ranked on Working Mother magazine’s 100 Best Companies list for the second consecutive year; and
- Recognized for community leadership for providing more than $1.9 million to local organizations in 2015, primarily focused on senior services and financial literacy programs through corporate and employee giving.
“These accomplishments are a reflection of the passion and dedication of our employees, confirming our commitment to supporting our customers and distribution partners, and being a visible leader in our community,” Gaumond said.
About Allianz Life
Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2015, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 147,000 employees worldwide. More than 85 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities. Follow Allianz Life Insurance Company of North America on Twitter @AllianzLifeNews.
Allianz Life Insurance Company of North America offers insurance and annuities in all states except New York. In New York, products are issued by Allianz Life Insurance Company of New York.
“Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.”
*For a full description of how Standard & Poor’s® Insurer Financial Strength Rating categories are assigned and to obtain current ratings refer to www.standardandpoors.com.
A Standard & Poor’s Insurer Financial Strength Rating is a current opinion of the financial security characteristics of an insurance organization with respect to its ability to pay under its insurance policies and contracts in accordance with their terms. Insurer Financial Strength Ratings are based on information furnished by rated organizations (or obtained by Standard & Poor’s from other sources it considers reliable). Insurers rated AA have Very Strong financial security characteristics.
Allianz Life Insurance Company of North America
Jeff Faust, 763-765-6614