Minneapolis-based Allianz Life Insurance Company of North America (
) today posted the highest operating profit in the company’s 110-year history at nearly $800MM for its 2009 financial year. The results can be attributed to strong operational performance coupled with rebounding economic conditions, including rising interest rates and narrowing credit spreads, which may not continue or be as impactful in 2010.
In February, A.M. Best reaffirmed the company's rating of A with a stable outlook based on the strong liquidity, unlevered balance sheet, improved operating profile and well-developed enterprise risk management practices. Additionally Allianz Life benefits from the strong support of its parent company, Allianz SE, one of the world's largest insurance and financial services companies.
"We have worked hard during the last several years to ensure that we are true to our most important obligation: the ability to keep our promises," said Allianz Life President & CEO Gary C. Bhojwani. "The strong performance in 2009 is the best demonstration of our commitment to this simple concept. These results are possible because of the full engagement of our employees, the support of our parent company and the collaboration of our business partners."
In addition, Allianz Life reported premium of $9.0B for 2009 up 2% versus prior year. The company achieved these results despite a pro-active, long-term risk management move resulting in the suspension of one-third of its business for five months. In March 2009, Allianz Life suspended the sale of the living benefit rider on its variable annuity offerings, relaunching in August 2009. The company benefited from turbulence in the competitive landscape, as well as solid distribution relationships and strong product offerings.
"While we are extremely pleased with the current performance, we are focused on continuing to build and improve upon industry-leading products and services that fulfill one of the greatest needs for retiring Americans: guaranteed income for life," Bhojwani added.