Allianz Life Insurance Co. of North America Friday reported a record operating profit of $932 million in 2015, the fourth consecutive year of improved operating earnings.
Chief Financial Officer Bill Gaumond said the results “speak to ongoing consumer demand for guaranteed-income products that can provide Americans with more confidence about achieving their financial and retirement goals.”
The Golden Valley-based life subsidiary of the huge German financial services firm said strong results were driven by disciplined business management, strong investment results and the continued growth of the fixed index annuity business.
Total premium (new sales and recurring premiums) reached $11.6 billion in 2015, down 26 percent from $15.7 billion in 2014. The decline was within expectations due to an “unusually strong 2014” and a drop in interest rates last year that led to less customer demand for certain products.
Gaumond said “it was still the second-highest premium year in the last 10 years.”
The company said total premium has posted an annual growth rate of 7 percent over the past four years. In 2015, fixed annuity and fixed-index annuity sales were $8.8 billion, variable annuities generated $2 billion of premium, and life insurance sales were $75 million.
Allianz Life, which employs 2,100, provided $2.4 billion in benefit payments last year. Assets under management finished flat at $121 billion.
The company is America’s largest seller of fixed-index annuities. They grow at the greater of an annual guaranteed minimum rate or the return from a specific stock market index, less expenses.