Allianz Confirms Retreat From Japan's Life Insurance Market
September 30 2011 - 1:20AM
Dow Jones News
German insurer group Allianz SE (ALV.XE) Friday confirmed it
will no longer pursue the life insurance market in Japan, but will
continue to honor previously signed contracts.
From early 2012, Allianz won't offer life insurance contracts in
Japan, a spokesman said, confirming a report by Nikkei.
A withdrawal from the market comes amid a major sales slump in
Japan due to the stock market downturn and low interest rates. The
move is also part of Allianz's efforts to streamline unprofitable
operations and buffer itself against fallout from the European
sovereign debt crisis, according to the Nikkei report.
Allianz Life Insurance Japan Ltd. has handled mainly
single-premium variable annuity products. In fiscal 2010, the local
unit added about 17,000 new contracts and generated Y127.5 billion
in premium revenues. However, sales have been plunging since the
start of the current fiscal year. As of the end of August, it had a
total of 35,000 contracts.
Allianz Fire & Marine Insurance Japan Ltd. and four other
group firms will continue operating in Japan.
-Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500.