Dear
Valued Distribution Partners,
Yesterday, our
parent company, Allianz SE, announced 2008 earnings. The report is
available in detail at www.allianz.com, but we wanted to communicate with you
directly on Allianz SE’s strong position relative to the market, as
well as its continued support of Allianz Life Insurance Company of North
America (Allianz Life).
In fact, Allianz
Life shares a conservative and prudent investment philosophy with its
parent company. And, as you’ll see from the numbers below, Allianz SE
has a strong capital position that provides a solid foundation even during
this economic crisis. Just this week, Allianz Life received a $300 million
capital injection from its parent to help maintain our financial strength.
Here are some
highlights from the Allianz Group 2008 earnings:
With an operating
profit of 7.4 billion Euros, excluding discontinued business, Allianz SE is
among the most profitable and stable companies in the entire industry.
While the prolonged sale of subsidiary Dresdner Bank caused a drag on the
numbers, the deal was completed at the beginning of 2009.
Collectively, the
Group has 75 million customers around the world. This geographic and
product diversification ensures that the Group’s collective results
are not influenced by individual countries or segments. In fact, our
parent’s solvency ratio of 161% is above and beyond regulatory and
legal requirements, making Allianz SE one of the most secure insurers
globally.
As reported by
its CFO Helmut Perlet, Allianz SE is better positioned than most companies
to weather the economic crisis for five key reasons:
1. We have a strong capital position.
2. We have a sustainable investment
strategy.
3. We are heavily weighted in property and
casualty, which is less vulnerable to current market volatility.
4. We have a relatively small position in
the variable annuity market, which is more vulnerable right now.
5. We are more focused on the fixed income
side of asset management versus the more volatile equity side.
In the future, Allianz SE will continue to strengthen both
its capital position and earnings results. At Allianz Life, we are
committed to running a strong business that will deliver long-term success
to our distribution system, our shareholders, and our customers.
As always, thank you for your business.
Sincerely,
Gary C. Bhojwani
President and CEO
Allianz Life Insurance Company of North America
