Allianz Life Tops Again With $762 Million of EIA Premium; Record Second Quarter EIA Premium Fuels Company's First $1 Billion Month.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 1, 2002

Allianz Life Insurance Company of North America (Allianz Life) today announced record equity indexed annuity (EIA) premiums of $762 million in the second quarter, highest among all U.S. EIA providers and 128 percent higher than the second quarter of 2001. Allianz Life outpaced the industry, topping the list of 40 EIA carriers in the U.S. It has been No. 1 in the EIA market in eight of the last nine fiscal quarters according to the Advantage Group, an independent research firm based in St. Louis, Missouri.

In addition to leading the EIA market, Allianz Life is fast becoming an industry leader in each of its market segments. Variable annuity premium has surged at the company's affiliate, USAllianz Investor Services, LLC(R), registering 122 percent growth through the second quarter of 2002, far outpacing the variable annuity industry in North America. The most recent Info-One(TM) /VARDS report stated that Allianz Life is one of just seven companies on track this year to show an increase over their 2001 variable annuity results. In fact, VARDS reports that Allianz Life is currently the fastest-growing of all variable annuity providers through the second quarter of 2002.

Total company performance by all Allianz Life divisions soared to more than $3.4 billion of premiums written in the first half of 2002, a 70 percent increase over the same period in 2001. And total company premium hit $1 billion in August, a new company record for any single month.

EIA sales in the United States set a record during the second quarter of 2002, with premiums totaling $2.8 billion. This figure represents a 74 percent increase compared with the second quarter of 2001, and 29 percent over the previous quarter of 2002, according to The Advantage Group.

"We place a very high priority on meeting the ever-changing financial needs of today's consumers, because we believe it is the basis of a sound business strategy" said Mark Zesbaugh, Allianz Life CEO. "Our product offering is designed to achieve a balance, meaning that; Allianz Life products must meet the test of offering long-term value to the consumer, supporting the people who represent us in the marketplace, and generating profitable business for Allianz Life. The rapid growth of every Allianz Life division in both individual and corporate markets--fixed products, variable products, long term care and our life and healthcare reinsurance offerings--is a reflection of that principle. Our representatives have confidence in the company and consumers are recognizing the value Allianz Life products offer."

Allianz Life also introduced a new generation universal life insurance product, called LifeFund, in late 2001. The LifeFund offering features both a variable product and an equity indexed product. Both products include lump-sum Critical Illness cash benefits and Chronic Illness benefits upon diagnosis of specific covered conditions, as well as tax-deferred cash value accumulation to help fund retirement.

About Allianz Life Insurance Company of North America

Allianz Life Insurance Company of North America (Allianz Life) is a leading provider of fixed and variable annuities and life policies and long term care products through independent distribution networks and financial institutions in the U.S. Allianz Life is also a major provider of life, annuity, and health reinsurance services. Allianz Life headquarters are based in Minneapolis. Allianz Life is a company of the Allianz Group, one of the world's leading integrated financial services providers, and the 18th largest corporation in the world (Fortune, July 2002). Allianz Group is represented with 700 subsidiaries in over 70 countries around the globe, and employs 180,000 people worldwide.

Cautionary Note Regarding Forward-Looking Statements 

Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements.