Allianz Leben says its company pensions business is booming, with growth coming from instant pensions and the “breathtaking” development of its Pensionskasse. But it sees challenges for pension provision ahead.
The life arm of German insurer Allianz, the company said in a statement that it saw new business rise 30.3% to e2.03bn in the first 10 months of 2002. This compares to market growth of 9.1% in the same period.
One of the main engines of new business growth was ‘SofortRente’ – instant pensions based on single-payment premiums. It said it signed more than 5,000 contracts with companies for the Pensionskasse alone – compared to 2,000 at the end of the first half. Over 8,000 employers either set up a company pension scheme from scratch or expanded an existing one.
The Allianz Dresdner Pension Fund, approved in May 2002, has some ground to make up, Allianz said. “The acid test for this new means of pension provision in Germany lies ahead, in 2003,” said Michael Hessling, board member for corporate business.
But it was disappointed by its so-called Riester business, pension products named after former labour minister Walter Riester. It concluded around 535,000 Riester contracts by the end of November, up from more than 300,000 at the end of 2001 – giving it a 20% market share.