Allianz Life Insurance Co. published a note where it informs the company is going to cut 5% of the workforce of 2.500 from the Twin Cities due to the current economic slowdown. After the company being accused last year of selling senior annuities which were not appropriate, generating some big lawsuits, such move is being faced by some specialists as an atempt to a make a new start. The company also started a plan last year to guarantee the suitability of their products to consumers.
Such move although well received by the industry, caused some agents to choose moving to other companies. The company also explains that although working with life insurance, annuities make up the bulk of the business, a revenue that's been shrinking in the recent years. In 2007, Allianz had anuity sales of $8,9 billion, in contrast with the $10,2 billion from 2006 and in spite of the annuity sales growing of 9% in the USA in the same period.
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