Golden Valley-based Allianz Life Insurance Company of North America said strong 2016 sales of annuities and other products helped it surpass $1 billion in operating profit for the first time.
The company also posted a fifth consecutive year of sales-and-profitability growth.
“Our strong results in 2016 were driven by our growing block of in-force business and increased demand for our retirement products,” CEO Walter White said in a statement. “Allianz Life products continue to play a key role in helping to ensure that Americans meet their financial and retirement goals.”
The announcement Friday came the same day as results announced by Allianz Life’s Germany-based parent company. The North American life insurer accounts for about 10 percent of the parent company’s profit, said Allianz Life Chief Financial Officer Bill Gaumond.
Allianz Life posted net income that rose 15 percent to $757 million last year on an asset base that increased to $125.3 billion.
Allianz Life’s total premium revenue rose 13 percent to $13.1 billion in 2016.
Results were driven by strong fixed-index annuity sales, tied to an index such as the stock market return. It grew 16 percent to $10.2 billion. Variable annuity sales experienced slight growth and indexed variable annuity sales rose by 118 percent to $1.45 billion.
Gaumond said Allianz Life anticipates higher interest rates in the future, as do other financial services companies.
That will allow the firm to generate more income on investments and pay higher rates to policyholders.
Allianz Life of North America employs about 2,225, including 2,000 at its two-building headquarters in Golden Valley.
The firm added 100 people last year.