Allianz Life Ratings Reaffirmed, Q2 Results
Trend Up
Both Moody's and S&P recently reaffirmed Allianz
Life ratings at A2 and AA respectively, based on the support and strength of
the parent company, Allianz SE, and our long-term conservative investment
strategy.
Allianz SE announced a profitable quarter, maintaining
an impressive solvency ratio of 159%, a measure of the amount of risk a
company can absorb. Allianz Life contributed to those results with
record-setting second quarter profits in 2009, a sharp rebound from late
2008. Allianz Life operating profit was $414 million in Q2 2009, up 77%
year-over-year.
The strong Q2 operating profit benefited from rising
interest rates and narrowing credit spreads. Allianz Life also ended Q2 with
a much improved capital position due to $1.5 billion in capital contributions
from Allianz SE this year.
“To have a parent that can bring such strength
during these economic times is a distinct advantage. We are fortunate to have
an organization with the conservatism, discipline and diversification of
Allianz SE behind us. Our ability to weather the recent crisis and benefit
from the current rebound in capital markets would have been far different
without the support of this global organization,” said President and
CEO Gary C. Bhojwani.
“Additionally, at a local level, our
conservative investment portfolio has yielded solid performance during the
last six months. This powerful combination of factors continues to ensure
that we maintain our most important obligation: the ability to keep our
promises,” he said.
Bhojwani also said he believes the long-term outlook
for annuities is increasingly positive due to changing consumer behavior and
demographics. He noted that the Allianz Life will introduce new variable
annuity riders next week.
“The 'new normal' has changed how Americans
evaluate risk and acceptable returns. We are living longer and more people
will be preparing for retirement than ever before. All of these factors
increase the need for annuities,” said Bhojwani, referring to Census
Bureau data that show nearly 30 percent of Americans will be 55 or older by
the year 20201.
Thank you for your ongoing support for this important
part of our business.
