Allianz: Expects Strong Decline In Variable Annuities Operations Rest 09

Allianz SE (AZ) expects a strong decline in its variable-annuity business in the remainder of 2009, Chief Financial Officer Helmut Perlet said Wednesday.

However Allianz expects no need for job cuts at its U.S. operations, Perlet said on a conference call with journalists following the company's first-quarter earnings.

As announced at the end of 2008, Allianz said in its earnings report it has actively addressed product issues in the U.S, discontinuing some products, modifying and repricing others.

The company said it doesn't expect the first-quarter spike in the sales of variable-annuity products to continue in the remainder of 2009.

"We expect significantly lower sales of these products throughout the rest of the year," Allianz said.

Perlet said Allianz is in the process of developing a new variable-annuity product of which the launch can be expected in the second or third quarter.

In the U.S. quarterly premiums in life/health insurance business were up 38%, or EUR508 million.

Company Web site: www.allianz.com

-By Ulrike Dauer, Dow Jones Newswires; [phone]; [e-mail]