Allianz Life Insurance Co. of North America, based in Minneapolis, is very happy with their second quarter premiums. While their operating profit decreased due to a difficult economic situation, premiums were higher than Allianz had anticipated. Sales of variable annuities were 44% higher than in the second quarter of 2009. Fixed Index annuity sales increased to $1.6 billion, up 9%. The American unit of Germany’s large insurance company Allianz had profits of $67 million, down from last quarter’s $110 million. Despite this decline, their sales and the profitability of their premiums are better than they had expected at this point in the year.
The President and CEO of Allianz Life compares the market challenges from this particular quarter to those of the third quarter of 2008. Even with that challenge, Allianz Life had a stronger operating profit and better new business margins. The VP of finance says that the company is pleased with the direction in which they are moving. Fixed Index annuities are increasing in popularity as investors look for both stability and a guaranteed lifetime stream of income. Parent company Allianz SE remains very strong and stable in the European marketplace. Allianz Life is doing careful hiring now, with 66 people expected to be hired in the United States.
