TOKYO (Nikkei)--Allianz, Europe's largest insurer, will from
Jan. 1, 2012, stop taking on new life insurance contracts in Japan
and focus on managing only existing ones, the Nikkei reported in
its Friday evening edition.
The de facto withdrawal plan comes at a time when the German
insurance giant is struggling with a major sales slump in Japan due
to the stock market downturn and low interest rates. The move is
also part of ongoing efforts to streamline unprofitable operations
to buffer itself against fallout from the European sovereign debt
crisis.
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 Life Insurance Japan, which had 233 employees as of the
end of last month, is expected to reduce its workforce through an
early retirement program.
Allianz Fire & Marine Insurance Japan Ltd. and four other
group firms will continue operating in Japan.