Beginning March 29: To help insurance agents and financial advisors like you guide clients in making critical wealth, health and life decisions we will be moving our coverage from to

Our comprehensive coverage will help you expand your knowledge base and adapt a new client-centric approach that incorporates both insurance and investment solutions.

ThinkAdvisor’s new Life/Health channel is your roadmap to thriving in a disrupted environment.


Filed Under:Annuities, Sales Strategies

Allianz Life’s Q1 earnings dip 38%

Allianz Life Insurance Company of North America posted an operating profit in the first quarter, but earnings were down 38 percent from the year-ago period, the company disclosed in financial results released on Wednesday.

The Minneapolis-based life insurer's first quarter operating profit totaled $134 million, a 38 percent decline from the $217 million recorded in the first quarter of 2012.

The first quarter 2013 earnings compare favorably, however, with the company’s fourth quarter 2012 profit of just $27 million.

“The decrease in year-over-year quarterly profit and the increase in quarter-over-quarter profit reflect normal profit fluctuations and positive one-offs in the first quarter of last year,” the company indicates in a press statement. “In addition, total assets under management reached $104.5 billion, compared to $98.5 billion at March 31, 2012, representing growth of approximately 6 percent.

“In the quarter, more than $2 billion of benefits were paid to policyholders in the form of claims disbursements, annuity payments and withdrawals,” the company adds.

Allianz Life also improved its capital position, reporting a 21 percentage point increase in regulatory risk-based capital (RBC) ratio from 373 percent on Dec. 31, 2012 to 394 percent on March 31, 2013.

“Despite a very low interest rate environment that negatively affects all life insurers, our business continues to have strong performance,” said Allianz Life Chief Financial Officer Giulio Terzariol. “Though it is common to see fluctuations in quarterly profit, Allianz Life’s profit trends remain strong and in line with our expectations."

Sales volume in the first quarter of 2013 was up 3 percent compared to the fourth quarter of 2012. Allianz Life reported premium of $2.1 billion for the quarter, compared to $2.0 billion in the fourth quarter of 2012 and $2.7 billion in first quarter of 2012.

Fixed annuity premium of $1.2 billion was down 7 percent compared to the fourth quarter 2012, but variable annuity sales of $742 million were up 21 percent compared to the fourth quarter of 2012. A slight drop in life insurance sales for the first quarter 2013 reflects sales of $16 million, a 5 percent decrease from sales of $17 million in the fourth quarter of 2012. 

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]


In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI


Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's


An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting


Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources


Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.