Strong Q2 operating profit benefited from rising interest rates and narrowing credit spreads
Minneapolis-based Allianz Life Insurance Company of North America (Allianz Life) has announced a profitable quarter, maintaining a solvency ratio of 159%.
Allianz Life, part of Allianz SE, contributed to the results with second quarter profits in 2009, a sharp rebound from late 2008. Allianz Life’s 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 an improved capital position due to $1.5 billion in capital contributions from Allianz SE, during the quarter.
Gary Bhojwani, president and CEO of Allianz Life, said: “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.”
Allianz Life provides annuities as well as life and long-term care insurance in the US.