Allianz: An analysis of the market trend in financial services across US and Allianz growing importance in the Insurance sector
"Allianz SE in US is a financial services provider. It is one of the leading services providers in insurance,banking and asset management and has a strong presence in US. The company is one of leading insuranceproviders in the property and causality as well as life insurance segments. The division specializes in the property-casualty and life insurance markets on the basis of gross premiumswritten and statutory premiums. It offers a range of property-casualty and life/health insurance products to private as well ascorporate customers. The company operates its insurance business in nearly each state ofUnited States. The company operates through four reportable segments, namely, Property-Casualty, Life/Health, Asset Managementsegments, Corporate and Other.As of December 31, 2010, the Company had 986 fully consolidated entities, including four Special Purpose Entities, 17 joint ventures and 125 associated entities.
The gross premium written has increasedby 1.1% over previous year and was $3.84 Billion for the fiscal year ended 2010, when compared to $3.81 Billion in 2009.The company has been reporting increased returns in net investment income over the past years. The net investmentincome of the company rose by 14.6% in 2010.The corporate and other segment of Allianz continued reporting operating loss in 2010. The segments reported a loss of ($1.02 Billion) and ($942 Million) for the fiscal year2010. Decreasing business volume in life and firereinsurance was offset by growth in business interruption, extended coverage, hail and other special property and casualty reinsurance.Due to purchasing more catastrophe protection and increased Group internal retrocession of industrial business, the net retention was reduced to 81.1 % in 2010 and the premiums earned (net) decreased slightly to $3.15 Billion.
Yields on German and U.S. bonds, on the other hand, are likely to continue to creep up. As far as the stock market is concerned, further increases in corporate earnings should mean that the overall environment in 2011, and presumably also in 2012, will remain benign. Berkshire Hathaway, Inc. has set up an Indian unit to distribute general insurance products in India. Berkshire India, will be a corporate agent of Bajaj Allianz General Insurance Co. and sell insurance products via an online distribution portal and telemarketing. Initially, the focus will be on motor insurance, but the Company will continuously update its business model. The major competitors of Allianz SE in US market are XL Capital Ltd., Aviva Plc., AEGON N.V., Zurich Financial Services Ltd, ING Groep N.V., AXA SA and American International Group, Inc."