Allianz SE , AL-i-ənts) is a German multinational financial services company headquartered in Munich. Its core business and focus is insurance. As of 2013, it is the world's largest insurance company, the 11th-largest financial services group and 25th-largest company according to a composite measure by Forbes magazine, as well as the largest financial services company when measured by 2012 revenue.Its Allianz Global Investors division ranks as a top-five global active investment manager, having €1,770 billion of assets under management , of which €1,131 billion are third-party assets , with specialized asset managers including PIMCO , RCM and Degi .Allianz sold Dresdner Bank to Commerzbank in November 2008. As a result of this merger, Allianz gained a 14% controlling stake in the new Commerzbank. Wikipedia.
News Article | May 16, 2017
MINNEAPOLIS--(BUSINESS WIRE)--Although more women are taking the reins of their household finances, divorce and widowhood remain significant roadblocks to achieving true financial security, according to the newly updated Allianz Women, Money, and Power® Study* from Allianz Life Insurance Company of North America (Allianz Life®). More than six in 10 (64%) divorced respondents said their divorce created a financial crisis for them and nearly an equal amount (59%) noted that losing their spouse/significant other due to divorce was a real “wake-up call” for them from a financial standpoint. Although fewer widowed respondents (43%) said losing their spouse due to the spouse’s death created a financial crisis, a full 60% felt the loss of their spouse served as a financial wake-up call. These responses came despite the fact that the majority of women in the study (51%) claimed they are the chief financial officer (CFO) of their household, and more than two-thirds (68%) of women said they currently feel financially secure, with that number rising to 73% for married women. “It’s clear that no matter how confident women feel about their current financial situation and ability to manage money, divorce and/or becoming a widow can create turmoil that has lasting effects,” said Allianz Life Senior Director of Consumer Insights Deb Repya. “It’s important that women play an active role in every aspect of their family’s financial planning so they are better prepared for whatever challenges the future may bring.” When asked what worries keep them up at night, more than a third (34%) of women in the study identified “running out of money in retirement” as their top concern. Not surprising, this fear was much higher for divorcees and widows with half of all divorced respondents and a full 40% of widowed respondents ranking it as their biggest worry. Furthermore, divorced women said they struggle the most with saving enough to meet their goals, with 65% agreeing it’s hard to save for both short- and long-term goals because they live paycheck to paycheck. This response was significantly higher than that from either single (51%) or married (47%) respondents. Working with a financial professional can help mitigate the uncertainty that comes with the loss of a spouse. Currently, only 30% of women in the study reported using a financial professional for guidance, but 75% of those who do say they wish they had done it sooner. While connecting with a financial professional can help instill confidence to deal with future challenges, these relationships can be problematic, as many women say they feel left out of the financial planning conversation. More than half (51%) claim the professional treats their spouse/partner as the decision-maker, and this happens regardless of whether the financial professional is male or female. Today’s women also feel compelled to share their knowledge with younger family members. When asked what advice they should pass on to their daughters/granddaughters, more than 80% of both divorced and widowed respondents said, “don’t depend on others for your financial security.” Similarly, more than three-quarters of divorced and widowed respondents also advocated “planning early” and for the next generations to “have a financial plan.” “It’s never too early to start building up your financial acumen, whether that means researching financial topics on your own, getting more practice by taking on increased responsibility at home or communicating the importance of financial planning to younger family members,” added Repya. Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2016, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. In 2015, Allianz Life provided a total of $2.6 billion in benefit payments that supported policyholders’ financial objectives. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 142,000 employees in more than 70 countries worldwide. More than 85 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities. *The Allianz Life Women, Money, and Power Study was commissioned by Allianz Life Insurance Company of North America in October 2016 with some questions resurveyed from the 2013 Allianz Women, Money, and Power Study. 1,416 women, ages 25-75 with household income of $30,000/year or higher, completed the online survey.
News Article | May 24, 2017
Though sales at Royal Dutch Shell have been declining, the company's profit more than doubled in the past year – catapulting it to the top of our 2017 list of Europe's largest companies. Shell is one of 469 Europe-based public companies on Forbes' Global 2000, our annual ranking of the world’s largest public companies. For the past year, Shell saw $234 billion in sales,$4.6 billion in profit, $411 billion in assets and a market cap of $228 billion. In 2016, the company ranked as the 50th largest company in the world. Today, it ranks 20th. German companies dominated the top 25 in Europe, with Allianz SE taking the number two spot, and 21st globally. The insurance company saw $115 billion in sales,$7.6 billion in profit, $935 billion in assets and a market cap of $83 billion. France's BNP Paribas returns to the list this year as the third largest European company (up one spot from last year), with $74 billion in sales,$8.3 billion in profit, $2.2 trillion in assets and a market cap of $80 billion. Amidst Brexit negotiations, last year's European leader HSBC Holdings fell in the global rankings from 14th to 48th. Volkswagen’s 2015 emission scandal has continued to haunt the company, as its global rank dropped from 22 to 28. In 2015, the German automaker ranked the 14th largest company in the world. For more coverage of the FORBES Global 2000 ranking of the world’s largest public companies, see below: Global 2000: The Largest Companies In China In 2017 Here's How Much Of Russia's Biggest Banks And Drillers The Kremlin Owns World's Largest Retailers 2017: Amazon & Alibaba Are Closing In On Wal-Mart World's Largest Food And Beverage Companies 2017: Nestle, Pepsi And Coca-Cola Dominate The Field
News Article | May 24, 2017
— The Global Mobile Phone Insurance Market is expected to account for nearly $20 Billion revenue in 2016. The market is further expected to grow at a CAGR of approximately 12% over the next four years, eventually accounting for over $30 Billion in revenue by the end of 2020. Browse 47 Figures and 7 Chapters, the Report Spread across 120 pages is available for Discount at http://www.rnrmarketresearch.com/contacts/discount?rname=666215. Given the increasing prevalence of expensive household goods, cars and consumer electronics, insurance has become an unavoidable and often necessary cost in modern life. Mobile phones, and smartphones in particular are no exception to this trend. Most major wireless carriers, insurance specialists, device OEMs, retailers and even banks now offer insurance plans that cover theft, loss, malfunctions and damage of mobile phones. Many policies now also integrate enhanced technical support and additional protection features such as data backup facilities, allowing users to securely backup their phone data online. List of Companies Mentioned: A Wireless, AIG (American International Group), Allianz Insurance, Allianz SE Group, América Móvil, AmTrust International Underwriters, Aon, Appalachian Wireless, Apple, Assurant, Asurion, AT&T, AT&T Mobility, Aviva, AXA, Barclays, Best Buy, Bouygues Telecom, Brightstar Corporation, BT Group, Cellebrite, Chubb, CWS (Connected World Services Distributions), Diamond Wireless, Dixons Carphone, DT (Deutsche Telekom) Topics Covered: • Mobile phone insurance ecosystem • Market drivers and barriers • Insurance policy structure, distribution channels and key trends • Case studies of mobile phone insurance initiatives • Industry roadmap and value chain • Profiles and strategies of over 40 leading ecosystem players • Strategic recommendations for ecosystem players • Market analysis and forecasts from 2016 till 2030. •In an effort to boost the uptake of mobile phone insurance, wireless carriers and insurance providers have extensively enhanced their insurance offerings with the addition of location tracking, data protection/recovery features and integrated technical support. •The success of mobile phone insurance plans has driven several wireless carriers, such as NTT DoCoMo and Orange, to invest in the sales of other insurance products through mobile phones and their retail outlets. •New insurance models are also beginning to emerge, such as London-based So-Sure’s social insurance for mobile phones, which allows customers to get up to 80% of their money back, if they and their friends don’t claim. •Device OEMs are beginning to invest in tailored plans to suit the specific requirements of certain regional markets. A good example is Xiaomi’s Mi Protect plan in India, which covers accidental and liquid damage, for as little as $7 per year. Another related report “Mobile Phone Insurance Revenue Forecasts: 2016 – 2030” datasheet presents market size forecasts for the mobile phone insurance market from 2016 through to 2030, is available for purchase @ http://www.rnrmarketresearch.com/contacts/purchase?rname=739645 - US $1000. About Us: ReportsnReports.com is single source for all market research needs. Our database includes 500,000+ market research reports from over 95 leading global publishers & in-depth market research studies of over 5000 micro markets. For more information, please visit http://www.rnrmarketresearch.com/the-mobile-phone-insurance-ecosystem-2016-2030-opportunities-challenges-strategies-forecasts-market-report.html?utm_source=Mrktrmdia&utm_medium=giti
News Article | May 23, 2017
MINNEAPOLIS--(BUSINESS WIRE)--Allianz Life Insurance Company of North America (Allianz Life®) today announced the launch of two new index variable annuity (IVA) products, Allianz Index Advantage ADVSM Variable Annuity and Allianz Index Advantage NFSM Variable Annuity. Modeled after the successful flagship Allianz Index Advantage® Variable Annuity, the new offerings provide multiple ways to benefit from the balance of performance potential and level of protection. The new IVA product lineup now positions Allianz Life to better capitalize on the growing demand for IVAs and brings the well-received concept of upside potential with some protection to a broader market of consumers. Allianz Index Advantage ADV is exclusively designed to fit within a fee-based portfolio, while Allianz Index Advantage NF, with no annual product fee on the index strategies, establishes another option for fee-sensitive clients. “By offering Index Advantage ADV and Index Advantage NF, Allianz Life now has a suite of index variable annuity products that help balance risk and return, giving clients more options for building a solid retirement foundation,” said Allianz Life Chief Distribution Officer Tom Burns. “These IVAs offer an opportunity to grow a client’s retirement nest egg by being able to participate in market gains while still having a level of asset protection.” Index Advantage ADV and Index Advantage NF both help clients reach long-term financial goals by offering the combination of variable options and three index options giving a balance between protection and performance potential. Both of these potential solutions also offer features including tax-deferred growth opportunities and a built-in death benefit. As with any investment vehicle, variable annuities are subject to risk, including possible loss of principal. Investment returns and principal will fluctuate with market conditions so that contract values, upon distribution, may be worth more or less than the original cost. For more complete information about Allianz index variable annuities and the variable options, call Allianz Life Financial Services, LLC at 800.542.5427 for a prospectus. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the variable annuity and variable options, which your clients should carefully consider. Encourage your clients to read the prospectuses thoroughly before sending money. Withdrawals will reduce the contract value and the value of any protection benefits. Additional withdrawals taken within the withdrawal charge period will be subject to a withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax Guarantees are backed by the financial strength and claims-paying ability of the issuing company and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions. Products are issued by Allianz Life Insurance Company of North America and distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. www.allianzlife.com (L40538, L40538-NF) Not FDIC insured •May lose value •No bank or credit union guarantee •Not a deposit •Not insured by any federal government agency or NCUA/NCUSIF. Product and feature availability may vary by state broker/dealer. Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For® in 2017, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. In 2016, Allianz Life provided a total of $2.6 billion in benefit payments that supported policyholders’ financial objectives. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 142,000 employees in more than 70 countries worldwide. More than 85 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities.
News Article | May 8, 2017
MINNEAPOLIS--(BUSINESS WIRE)--Allianz Life Insurance Company of North America (Allianz Life®) has hired Tobias Fritsch as chief operating officer for the Allianz Investment Management (AIM) division. In his new role, Fritsch will be responsible for enabling all hedging, investment strategy, and portfolio management activities for AIM, which has more than $100 billion in assets under management in the U.S. Fritsch will lead the functions responsible for middle and back office accounting and operations support, strategic IT systems, and overall program and financial management. He will report to Allianz Life Chief Investment Officer, Todd Hedtke. “Tobias brings a strong understanding of global Allianz initiatives, which is hugely beneficial as our team collaborates with colleagues around the world to direct our company-wide investment strategy,” said Hedtke. “We are excited to utilize his vast leadership experience in both operations and investment management in order to make AIM a more efficient and effective organization.” Fritsch joins Allianz Life from Allianz Global Investors (AGI) in Berlin, Germany where he was an executive program manager responsible for leading a strategic initiative to redesign and transform the target operating model of AGI. He was also responsible for an acquisition and post-merger integration of Rogge, a global fixed income asset manager, into AGI. Fritsch joined Allianz in 2009, holding various leadership roles with AGI, Allianz Managed Operations & Services (AMOS) and Allianz Deutschland. Previous to Allianz, he was a consultant with A.T. Kearney. Fritsch holds multiple advanced degrees in the areas of business administration, eTechnical engineering, computer science, economics, political science and government, history and literature, sociology, and philosophy. Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2017, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. In 2016, Allianz Life provided a total of $2.6 billion in benefit payments that supported policyholders’ financial objectives. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 142,000 employees in more than 70 countries worldwide. More than 85 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities.
News Article | February 23, 2017
KUALA LUMPUR, Malaysia and SINGAPORE, Feb. 23, 2017 /PRNewswire/ -- Allianz, the international financial services company, and the Asian Football Confederation ("AFC") today announced a multi-year pan-regional partnership. The exclusive category sponsorship extends and leverages Allianz's global football heritage to connect more deeply with its customers in key Asian markets, while significantly expanding its brand presence in the growth region. Encompassing Asia's most important club tournaments - including the AFC Champions League, the AFC Cup, as well as the AFC Futsal Club Championships - the partnership programme reaches a huge audience base across stadiums, television and on diverse social and digital platforms. "We are very proud to be working with the AFC to support Asian football. This partnership exemplifies the distinct Allianz values of innovation, courage and excellence, and brings them to life by celebrating our footballers, fans and communities in the region," said Lars Heibutzki, Chief Distribution Officer for Asia, Allianz. Headquartered in Kuala Lumpur, Malaysia, the AFC is one of six Confederations that make up FIFA, the world football federation. It comprises 46 Member Associations across Asia, Australasia and the Middle-East, spanning a population of 4.27 billion people. "As the most popular sport in the world, football continues to reach record heights every year, and nowhere more so than in the dynamic Asia region. This partnership provides Allianz with a unique platform to support the huge segments of Asian society, for whom football is a passion and an essential part of life. We see ourselves supporting the games both at the top championship levels, as well as in nurturing Asia's next-generation talent with our signature youth programmes," added Paul Groves, Head of Market Management for Asia, Allianz. Asia is one of our three major growth regions. It is characterized by a rich diversity of cultures, languages and customs. Allianz has been present in the region since 1910, providing fire and marine insurance in the coastal cities of China. Today, Allianz is active in 14 markets in the region, offering its core businesses of property and casualty insurance, life and health insurance and asset management. With its more than 32,000 staff, Allianz serves the needs of over 18 million customers in the region across multiple distribution channels. The Allianz Group serves 86 million retail and corporate customers in more than 70 countries, making it one of the world's largest insurers and asset managers. In 2016, over 140,000 employees worldwide achieved total revenues of 122.4 billion euros and an operating profit of 10.8 billion euros. Allianz Group managed an investment portfolio of 653 billion euros. Additionally our asset managers AllianzGI and PIMCO managed over 1.3 trillion euros of third-party assets. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property and health insurance to assistance services to credit insurance and global business insurance. As an investor, Allianz is active in a variety of sectors including debt, equity, infrastructure, real estate and renewable energy. The Group's long-term value strategies maximize risk-adjusted returns. The Asian Football Confederation (AFC) is the governing body of Asian football and one of the six Confederations making up FIFA. Formed in 1954 in Manila on the sidelines of the second Asian Games, the AFC was sanctioned by FIFA in Berne, Switzerland. The AFC is headquartered in Kuala Lumpur, Malaysia and consists of 46 Member Associations and one Associate Member Association (The Northern Mariana Islands). The AFC is responsible for running football in Asia. Among its various responsibilities are: regulating the game, drafting new laws to improve the sport, implementing the law, boosting grassroots and youth football, and conducting major competitions. These assessments are, as always, subject to the disclaimer provided below. The statements contained herein may include prospects, 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. Actual results, performance or events may differ materially from those expressed or implied in such forward-looking statements. Such deviations may arise due to, without limitation, (i) changes of the general economic conditions and competitive situation, particularly in the Allianz Group's core business and core markets, (ii) performance of financial markets (particularly market volatility, liquidity and credit events), (iii) frequency and severity of insured loss events, including from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the euro/US-dollar exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions, including related integration issues, and reorganization measures, and (xi) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. The company assumes no obligation to update any information or forward-looking statement contained herein, save for any information required to be disclosed by law.
News Article | February 17, 2017
MINNEAPOLIS--(BUSINESS WIRE)--Allianz Life Insurance Company of North America (Allianz Life®) today announced its 2016 financial results, reporting an operating profit of $1.06 billion, up 14 percent from 2015. In surpassing the $1 billion mark for the first time in the company’s history, the Minneapolis-based financial services firm marked its fifth consecutive year of growth. Allianz Life’s assets under management also rose to $125.3 billion, up seven percent from the previous year. Net income was up 15 percent in 2016 over the previous year, reaching $757 million. “Our strong results in 2016 were driven by our growing block of in-force business and increased demand for our retirement products,” said President and Chief Executive Officer Walter White. “Allianz Life products continue to play a key role in helping to ensure that Americans meet their financial and retirement goals.” Allianz Life’s total premium reached $13.1 billion in 2016, up 13 percent from $11.6 billion in 2015. Results were driven by strong fixed index annuity (FIA) sales, which grew 16 percent to $10.2 billion in 2016. Variable annuity (VA) sales experienced slight growth, but indexed variable annuity (IVA) sales rose dramatically by 118 percent in 2016 over 2015, hitting $1.45 billion. 2016 life insurance premium was $72.8 million while recurring life insurance premium was up nine percent over 2015 at $627.5 million. Allianz Life paid $2.6 billion in benefits to its policyholders and contract owners via life insurance and annuity payments in 2016, up eight percent from the previous year. Allianz Life continued to receive strong financial and credit ratings in 2016. A.M. Best reaffirmed the company’s financial strength rating of A+ (Superior), the second-highest of its 16 possible ratings. Standard and Poor’s also reaffirmed Allianz Life’s rating, AA (Very Strong), the third-highest of its 21 possible ratings. In addition to solid financial results in 2016, Allianz Life received the following distinctions throughout the year: Note: Allianz Life’s parent company, Allianz SE, has also released its 2016 financial results. Of note, 10 percent of its overall operating profit was generated by Allianz Life in the United States in 2016. Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2016, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. In 2016, Allianz Life provided a total of $2.6 billion in benefit payments that supported policyholders’ financial objectives. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 142,000 employees in more than 70 countries worldwide. More than 85 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities.
News Article | November 9, 2016
BRUSSELS, BELGIUM--(Marketwired - Nov 9, 2016) - Editors Note: There is an image associated with this press release. The Corporate Learning Improvement Process (CLIP) is a unique accreditation run by EFMD that focuses on identifying the key factors that determine quality in the design and functioning of corporate universities and learning organisations. EFMD is delighted to announce that Sberbank Corporate University from Russia, has recently been awarded CLIP accreditation and joins the community of accredited organisations which also include: Akademie Deutscher Genossenschaften ADG, Alcatel-Lucent, Allianz SE, ArcelorMittal, BBVA - Banco Bilbao Vizcaya Argentaria, Capgemini University, Credit Suisse AG, EDF Group, EDP - Energy of Portugal, Gas Natural Fenosa, GDF SUEZ University, Grupo Santander, Mazars University, MLP Finanzdienstleistungen AG, Novartis International AG, OCP Corporate Training Institute, PSA Peugeot Citroen, Repsol, Siemens AG, Swiss Reinsurance Company Ltd. and UniCredit Group. "The team of Sberbank Corporate University was very honored to receive CLIP accreditation for our institution. We believe that going through rigorous processes of self-assessment and peer review against CLIP quality standards was critical for better understanding our existing strengths and development priorities for the coming years. This prestigious international professional recognition is especially important given the short history of Sberbank CU, the scale and scope of our learning agenda for 35 000 Sberbank managers, and our high ambitions of becoming a driver of strategic changes at Sberbank. Our prime goal now is to keep the learning momentum while constantly reinventing ourselves to ensure that we effectively support Sberbank's transformation towards 'a technology-driven company with a banking license' as its response to the challenges of the global competition in the digital age," said Valery Katkalo, Dean of Sberbank Corporate University. Martin Moehrle, Associate Director, Corporate Services, who leads the CLIP process at EFMD, commented on the Sberbank Corporate University's accreditation: "The EFMD team has been particularly impressed by the extraordinary sponsorship of Sberbank Corporate University from the top, by the strong momentum it has created within the organisation, its high visibility outside the company, its excellence in program design and delivery at scale, its strong collaboration with the business, its discipline in following set principles for learning and its role in deploying Sberbank values. We congratulate SCU, under the leadership of Valery Katkalo, for building such an impactful and mature platform in record time and for achieving CLIP accreditation, and we look forward to their contribution to the CLIP community." The CLIP assessment process covers all the essential dimensions of the corporate university's deployment within the company: the alignment of its mission and operational objectives with corporate strategy, the effectiveness of its governance and internal management systems, its ability to address key issues of concern to the business units, the programme design process, the overall coherence of the programme portfolio, the quality of delivery and the impact of the corporate university's activities upon individual and organisational learning. For more information on the CLIP process, visit - www.efmd.org/clip EFMD is a leading international network of business schools and companies at the forefront or raising the standards of management education and development globally. More information about EFMD is available via efmd.org. To view the image associated with this press release, visit the following link: http://www.marketwire.com/library/20161108-EFMD-Bild.jpg
News Article | February 21, 2017
EDMONTON, AB--(Marketwired - February 21, 2017) - Capital Power Corporation (Capital Power, or the Company) (TSX: CPX) today released financial results for the fourth quarter and year ended December 31, 2016. Net income attributable to shareholders in the fourth quarter of 2016 was $28 million and basic earnings per share attributable to common shareholders was $0.21 per share, compared with $35 million, or $0.29 per share, in the comparable period of 2015. Normalized earnings attributable to common shareholders in the fourth quarter of 2016, after adjusting for one-time items and fair value adjustments, were $26 million or $0.27 per share compared with $41 million or $0.42 per share in the fourth quarter of 2015. Net cash flows from operating activities were $69 million in the fourth quarter of 2016 compared with $114 million in the fourth quarter of 2015. Funds from operations (FFO) were $75 million in the fourth quarter of 2016, compared to $125 million in the fourth quarter of 2015. For the year ended December 31, 2016, net income attributable to shareholders was $111 million and basic earnings per share attributable to common shareholders was $0.91 per share compared with $90 million and $0.70 for the year ended December 31, 2015. For the year ended December 31, 2016, normalized earnings attributable to common shareholders were $117 million, or $1.22 per share, compared with $111 million, or $1.15 per share in 2015. Net cash flows from operating activities were $375 million for the year ended December 31, 2016 compared with $419 million for the year ended December 31, 2015. FFO totaled $384 million in 2016 compared with $400 million in 2015. "In 2016, Capital Power met its annual operating and financial targets, while continuing to deliver on its corporate priorities," said Brian Vaasjo, President and CEO of Capital Power. "We achieved these objectives despite challenging market and economic conditions that contributed to record-low spot power prices and unprecedented changes to the Alberta power market." "Our facilities produced an average availability of 94% and we generated FFO of $384 million, which was consistent with our $380 to $430 million target range," continued Mr. Vaasjo. "Our FFO results reflected the one-time $20 million Sundance PPA settlement payment in the fourth quarter of 2016 to the Alberta Balancing Pool." "We arrived at a satisfactory agreement with the Government of Alberta on fair compensation for the early retirement of our coal assets and settled the Sundance PPA dispute issue. The resolution of these two issues has removed the largest uncertainties the Company has ever faced. We can now move forward with confidence, knowing that developing generation opportunities in Alberta will continue to be predicated on market and economic signals." "For 2017, we continue to focus on increasing our contracted cash flows to support a sustainable and growing dividend to our shareholders," added Mr. Vaasjo. "The completion of our Bloom Wind project in the third quarter and the commencement of annual coal compensation payments of $52 million per year, will add to our contracted cash flows and with a strong balance sheet and financial flexibility to fund growth, Capital Power is well-positioned to add both renewable and thermal assets in Canada and the United States." Project equity financing and completion of contract for output for Bloom Wind Bloom Wind is a 178 megawatt (MW) facility in southwestern Kansas consisting of 54 3.3 MW turbines and is anticipated to cost $358 million (US$272 million). Construction of Bloom Wind commenced during the third quarter of 2016. Commercial operation of the facility is expected in the third quarter of 2017. Capital Power will operate Bloom Wind under a 10-year fixed price contract with Allianz Risk Transfer (rated AA- stable by Standard & Poor's), a subsidiary of Allianz SE, the worldwide insurance and asset management group, covering 100% of the project's output. Under the contract, which was executed on April 21, 2016, Capital Power will swap the market revenue of the project's generation for a fixed annual payment for a 10-year term. The agreement will secure long-term predictable revenues and mitigate generation volume uncertainty related to wind resources, allowing Bloom Wind to secure renewable energy tax equity financing and provide Capital Power the opportunity to complete its first wind development project in the growing U.S. renewables market. On December 13, 2016, the Company reached an agreement with Goldman Sachs Alternative Energy Group (Project Investor) to fund an expected 65 to 70 percent of Bloom Wind costs through equity contributions in exchange for Class A shares of a subsidiary of the Company. These equity contributions are expected to begin upon the completion of the project and satisfaction of all conditions precedent, which is currently anticipated to occur in the third quarter of 2017. The Project Investor is entitled to the majority of income and tax benefits from the project until the Project Investor achieves an agreed upon target rate of return. Subsequent to this date, the structure "flips" and the Company is entitled to the majority of income, cash flows and tax benefits, while the Project Investor's equity investment will be accounted for as a non-controlling interest. Prior to the Project Investor achieving their target rate of return, their interest will be accounted for as tax equity financing within loans and borrowings. On March 24, 2016, Capital Power notified the Balancing Pool of the Company's decision to terminate its role as Buyer of the Sundance PPA. The Company recorded a pre-tax non-cash loss of $53 million ($46 million post-tax) with respect to the de-recognition of the Sundance PPA intangible asset. Effective March 24, 2016, the Company also de-designated certain energy cash flow hedges related to forecasted transactions no longer expected to occur as a result of the Sundance PPA termination, which resulted in the reclassification of unrealized gains of $5 million ($4 million post-tax) from other comprehensive income (loss) to net income. No hedge ineffectiveness resulted from the de-designation of the cash flow hedges. During the third quarter of 2016, the Government of Alberta commenced legal action that sought to retroactively amend and restate certain power purchase arrangements, including the Sundance PPA, and prevent the Balancing Pool from accepting Capital Power's termination of its role as Buyer of the Sundance PPA. On November 24, 2016, the Government of Alberta agreed to discontinue its legal action against Capital Power and to arrange for the Balancing Pool to accept Capital Power's termination of its role as a Buyer of the Sundance PPA in accordance with the terms of the Sundance PPA. In consideration of these actions, Capital Power and its syndicate partners agreed to pay the Balancing Pool $39 million, of which Capital Power's portion is $20 million ($15 million post-tax). On November 24, 2016, the Company announced it had reached an agreement with the Government of Alberta related to the transition away from coal-fired generation in Alberta by 2030. As compensation for the capital that the Company invested in coal generating assets that will be stranded effective December 31, 2030, Capital Power will receive cash payments from the Province of Alberta of $52 million annually for 14 years, commencing July 31, 2017 through to July 31, 2030, for a total of $734 million. Capital Power has agreed to continue to participate in the Alberta electricity market, support the local communities surrounding the coal facilities through 2030, and fulfill its pension and other commitments to employees. This settlement also recognizes the potential for extending the economic lives of certain assets through conversion to natural gas. On November 23, 2016, the Government of Alberta announced the transition of Alberta's electricity market from an energy-only market to a capacity market, for which the framework is expected to be in place by 2021. The Government of Alberta has committed to ensuring that existing investments will be treated fairly, and that the new market framework will continue to promote a level playing field between existing and potential new capacity. Design and implementation activities will be undertaken in 2017 and 2018, with the Alberta Electric System Operator (AESO) currently targeting having the first capacity auction in 2019 for delivery in 2021. On November 21, 2016, the Government of Canada announced its plan to phase-out traditional coal-fired electricity by 2030, and to establish emission standards for natural gas-fired turbines, including new boilers, existing boilers, and existing coal boilers converted to natural gas. Under the proposal, coal boilers that are converted to natural gas would be subject to an interim emissions standard that would apply for the earlier of 15 years, or 2045, after which time the units would be required to meet the emissions standards for new generation. The implementation of the phase-out and finalization of the natural gas regulations will be the subject of industry consultations expected to commence in 2017. At this time, it is expected that publication of the natural gas regulation in Canada Gazette Part I will be in late 2017, with final publication in Canada Gazette Part II in late 2018. In late September 2016, the Government of Alberta initiated formal consultations regarding the performance standard and carbon pricing framework that will apply, effective January 1, 2018, to facilities that are currently subject to the Specified Gas Emitters Regulation (SGER). The standard and pricing framework will be reflected in a new Carbon Competitiveness Regulation that will replace the current SGER regulation. The Company expects that the performance standard for the electricity sector will be consistent with the emissions performance of a combined-cycle natural gas-fired facility in Alberta, with specific details to be developed through consultation. On January 26, 2016, the Government of Alberta tasked the AESO to develop and implement a plan to bring on new renewable electricity generation capacity to the grid by 2030 in connection with the Climate Leadership Plan. The AESO undertook a process to receive industry perspectives regarding various elements of the Renewable Electricity Program (REP), and provided its recommendations regarding the REP to the Government of Alberta on May 31, 2016. On September 14, 2016, the Government of Alberta confirmed a firm target of achieving 30% of Alberta's electricity use by 2030 from renewable energy sources, and announced that the Government of Alberta would support 5000 MW of additional renewable capacity to help achieve that target. The AESO has provided a timeline for the first REP auction in 2017 with a request for proposals expected in the fourth quarter of 2017 with winning bids required to be operational in 2019. Financial support for projects funded through the first REP auction will reflect a contract-for-differences approach, and be for a 20-year term. Future REP auctions may be structured differently with respect to the form and amount of financial support provided, and contract length. On October 4, 2016, the Company issued 8 million Cumulative Minimum Rate Reset Preference Shares, Series 7 (Series 7 Shares) priced at $25.00 per share for gross proceeds of $200 million less issue costs of $5 million on a bought deal basis with a syndicate of underwriters. The preferred shares will pay fixed cumulative dividends of $1.50 per share per annum, yielding 6.00% per annum, payable on the last business day of March, June, September and December of each year, as and when declared by the Board of Directors of Capital Power, for the initial period ending December 31, 2021. The dividend rate will be reset on December 31, 2021 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield and 5.26%, provided that in any event such rate shall not be less than 6.00%. The Series 7 Shares are redeemable by Capital Power, at its option, on December 31, 2021 and every five years thereafter at a value of $25.00 per share. Holders of the Series 7 Shares will have the right to convert all or any part of their shares into Cumulative Floating Rate Preference Shares, Series 8 (Series 8 Shares), subject to certain conditions, on December 31, 2021 and every five years thereafter. Holders of the Series 8 Shares will be entitled to receive a cumulative quarterly floating dividend at a rate equal to the sum of the then 90-day Government of Canada Treasury Bill yield plus 5.26%, as and when declared by the Board of Directors of Capital Power. The Series 8 Shares would be redeemable by Capital Power, at its option, on December 31, 2026 and December 31 of every fifth year thereafter at a value of $25.00 per share. The Series 8 shares would also be redeemable by Capital Power, at its option, on any date after December 31, 2021, excluding December 31 of every fifth year, at a value of $25.50 per share. On September 13, 2016, the Company issued a $160 million, 10-year unsecured senior note to Prudential Capital Group. The note bears an annual interest rate of 3.85%, payable semi-annually, and matures in September 2026. The net proceeds of the offering were used to repay amounts owing under credit facilities and for general corporate purposes. On August 9, 2016, a consortium composed of Axium Infrastructure, Alberta Teachers' Retirement Fund Board, and Manulife Financial Corporation acquired Samsung Renewable Energy's one-third interest in K2 Wind. There is no change to the remaining interest in K2 Wind, which is still held equally by Pattern Energy Group Inc. and the Company. On July 25, 2016, the Company announced that its Board of Directors approved a 6.8% increase in the annual dividend for holders of its common shares, from $1.46 per common share to $1.56 per common share. This increased common dividend commenced with the third quarter 2016 quarterly dividend paid on October 31, 2016 to shareholders of record at the close of business on September 30, 2016. On February 18, 2016, the Board of Directors of Capital Power declared a quarterly dividend of $0.19125 per share on the Company's Cumulative 5-Year Rate Reset Preference Shares, Series 1 (Series 1 Shares). This quarterly dividend was paid on March 31, 2016. The Annual Fixed Dividend Rate for the Series 1 Shares for the next five-year period was reset from 4.60% to 3.06% on December 31, 2015 at a rate equal to the sum of the then Government of Canada bond yield and 2.17%. The Annual Fixed Dividend Rate will be next reset on December 31, 2020 and every five years thereafter. Appointments to the Board of Directors On February 17, 2017, the Capital Power Board of Directors approved the appointment of Keith Trent and Kate Stevenson to the Board of Directors. The appointments will be effective April 3, 2017. On February 21, 2017, the Company announced that it has entered into an agreement to acquire the thermal power business of Veresen Inc., consisting of two gas-fired and two waste-heat generation facilities. Under the terms of the agreement, Capital Power will acquire 284 MW of generation from two natural gas-fired power facilities in Ontario consisting of the 84 MW East Windsor Cogeneration Centre (East Windsor) and a 50% interest in the 400 MW York Energy Centre (York Energy) and will operate both facilities. Both East Windsor and York Energy are under long-term power purchase agreements, with the A rated Ontario Independent Electricity System Operator, with original terms expiring in 2029 and 2032, respectively. Both facilities earn revenue through fixed capacity payments partly indexed to inflation and are compensated for operations and maintenance, and fuel (commodity and transportation) as well as start-up costs. Additionally, East Windsor is under a long-term steam supply agreement with a BBB rated third party. The transaction also includes 10 MW of zero-emissions waste-heat generation from two facilities (5 MW each) located at Westcoast Energy's BC Gas Pipeline compressor stations in Savona and 150 Mile House, British Columbia. The waste heat facilities are under 20-year Electricity Purchase Agreements (EPAs), with AA rated BC Hydro, with original terms expiring in 2028. The EPAs provide for partial inflation indexation as well as premium pricing under peak load hours. A third party provides operations and maintenance services for the assets under a long-term agreement. The purchase price for the acquisition is $225 million in total cash consideration, subject to working capital adjustments and other closing adjustments, and the assumption of $275 million of project level debt (on a proportionate basis). Capital Power expects to finance the transaction through existing cash and its credit facilities. The transaction is expected to close in the second quarter of 2017, subject to regulatory approvals and satisfaction of closing conditions. Capital Power will be hosting a conference call and live webcast with analysts on February 21, 2017 at 9:00 am (MST) to discuss the fourth quarter and 2016 year-end financial results. The conference call dial-in numbers are: Interested parties may also access the live webcast on the Company's website at www.capitalpower.com with an archive of the webcast available following the conclusion of the analyst conference call. The Company uses (i) adjusted EBITDA, (ii) funds from operations, (iii) normalized earnings attributable to common shareholders, and (iv) normalized earnings per share as financial performance measures. These terms are not defined financial measures according to GAAP and do not have standardized meanings prescribed by GAAP, and, therefore, are unlikely to be comparable to similar measures used by other enterprises. These measures should not be considered alternatives to net income, net income attributable to shareholders of the Company, net cash flows from operating activities or other measures of financial performance calculated in accordance with GAAP. Rather, these measures are provided to complement GAAP measures in the analysis of the Company's results of operations from management's perspective. Reconciliations of adjusted EBITDA to net income (loss), funds from operations to net cash flows from operating activities and normalized earnings attributable to common shareholders to net income (loss) attributable to shareholders of the Company are contained in the Company's Management's Discussion and Analysis, prepared as of February 17, 2017, for the year ended December 31, 2016 which is available under the Company's profile on SEDAR at www.SEDAR.com. Forward-looking information or statements included in this press release are provided to inform the Company's shareholders and potential investors about management's assessment of Capital Power's future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this press release is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes. Material forward-looking information in this press release includes expectations regarding: (i) the transition to and structure of the proposed capacity market in Alberta, (ii) growth opportunities that may come to the Company as a result of new renewable electricity generation capacity, (iii) future contracted cash flows, dividend growth and business growth, (iv) financing plans for the acquisition of the thermal facilities, (v) closing of the acquisition of the thermal facilities, and (vi) timing of the closing date of the acquisition of the thermal facilities. These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements relate to: (i) electricity and other energy prices, (ii) anticipated facility performance, (iii) business prospects and opportunities including expected growth and capital projects, (iv) status of and impact of policy, legislation and regulations, and (v) effective tax rates. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company's expectations. Such material risks and uncertainties are: (i) changes in electricity prices in markets in which the Company operates, (ii) changes in energy commodity market prices and use of derivatives, (iii) regulatory and political environments including changes to environmental, financial reporting, market structure and tax legislation, (iv) facility availability and performance including maintenance of equipment, (v) ability to fund current and future capital and working capital needs, (vi) acquisitions and developments including timing and costs of regulatory approvals and construction, (vii) changes in market prices and availability of fuel, and (viii) changes in general economic and competitive conditions. See Risks and Risk Management in the Company's Management's Discussion and Analysis, prepared as of February 17, 2017, for further discussion of these and other risks. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the specified approval date. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
News Article | December 7, 2016
Christmas is a time for remembering family and friends and Allianz Insurance wants to add another group of people to those we think of at this time of year - Designated Drivers! Allianz found that over a third of people (36%) will take on the role of Designated Driver over the festive period so that their passengers can attend an event and enjoy a drink or two. Some Designated Drivers feel they are making a significant personal sacrifice because 36% said they are only doing it because it's 'their turn'. And for many drivers, their good deed turned into a rather challenging experience - 59% of Designated Drivers said their passengers had done something annoying during the journey back. Here are the Designated Driver top five things they wished their passengers had not done during the drive home: 3. Laughing at things that just aren't funny to a sober person 4. Distracting the driver when the car is moving Drink driving is a serious consideration all year round but over the Christmas period the temptation to have a few drinks can be strong. So it's reassuring to know that 82% of Designated Drivers plan to remain teetotal when 'on duty'. However, considerable caution is needed among the 17% of Designated Drivers who say they will consume some alcohol at the event but not enough to be over the drink drive limit. The Designated Driver isn't just important for family occasions; they are also a force for good following the work Christmas party which is a notoriously boozy affair. Allianz found that 16% of people are using some sort of car share arrangement to get home. However, 1 in 10 people (10%) are planning to drive themselves home. These self-drivers could be taking a chance as 1 in 5 people (20%) said they had previously stopped someone from driving home from a work party because they'd consumed too much alcohol. The day after the party is also important for anyone thinking of driving having consumed alcohol the day before. More than 6 in 10 of people (61%) said they had drunk enough at the party to make them uncertain about whether they were over the drink drive limit when they drove the next day. Simon Brimicombe, Director of Underwriting said: "People who have consumed a fair amount of alcohol at an event need to be careful the day after because they could still be unfit to drive. Our advice is not to risk it if you are in any doubt. "Designated Drivers are unsung heroes when it comes to keeping people safe on the road. We are asking partygoers to spare a thought for the people who help make our roads a safer place, particularly at Christmas when there are so many parties to go to. It must be quite a sacrifice for the drivers who like to have a drink and let their hair down when they go to a party, but have agreed to sacrifice some of their fun so that others can get home safely and keep their driving licenses." 1) Allianz carried out the research between 24-16 October 2016. 3) Allianz Insurance is one of the largest general insurers in the UK and part of the Allianz SE Group, the largest property and casualty insurer worldwide. Around 85 million private and corporate customers rely on Allianz's knowledge, global reach, capital strength and solidity to help them make the most of financial opportunities and to avoid and safeguard themselves against risks. In 2015, over 142,000 employees in more than 70 countries achieved total revenues of approximately 125.2bn euros