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Allianz announces

Profit growth and a strong combined ratio 

Posted: 14 May 2019

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Allianz UK:
Q1 2019
Q1 2018
Gross Written Premium (GWP) £493.5m £542.7m
Operating Profit £51.2m £39.8m
Combined Operating Ratio (COR) 94.8% 95.2%

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Commercial lines:
Q1 2019
Q1 2018
GWP £319.5m £291.4m
COR 96.7% 95.1%

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Personal lines:
Q1 2019
Q1 2018
GWP £174.1m £251.4m
COR 91.6% 93.9%


Gross Written Premium has increased by almost ten percent which reflects some degree of positive movement in underlying premium growth and the additional revenue generated by new commercial business following the joint venture with LV=. The level of new business from the transfer is at expected levels and we are grateful for the support of our Broker partners which we hope will continue as the process moves towards its conclusion in September.

At 96.7% the Commercial Combined Operating Ratio is good, but not at the level it was at this point last year. The property claims ratios are showing some of the strain of claims inflation running ahead of general inflation and rate. As we reported in the Q3 2018 results, the claims experience continues to be reminiscent of what we would expect to see when negative recessionary pressures force up claims frequency and repair costs.

Engineering Construction and Power had a strong quarter with income for inspection business being at its strongest for a number of years. This business is well set to build on its position as market leader and its expansion into a range of specialisms including renewable power and construction.


The transfer of business to LV= and its effects on revenue have been referred to previously. Importantly, the retained personal lines business is delivering a very strong underwriting profit which is clearly demonstrated by the Combined Operating Ratio of 91.6%.

Petplan is the major driver of the Personal Lines financial performance and the world’s biggest pet insurer continues to grow year-on-year and deliver a strong profit. In 2019 the business in on track to deliver a range of digitalised services designed to strengthen its already first rate relationship with its customers.


Launched in January, the “Defendant Hub” is a new digital proposition. It uses artificial intelligence to enable the company’s injury claims handlers to action Ministry of Justice Stage 3 claims at a single click of a button. The simplification of the process has resulted in savings of 30 minutes per claim and £137 in cost per case as well as improving the customer journey.

At a recent forum with Brokers we were able to share more examples of how technology is improving the experience for customers. For example, drone technology was used to discover the exact cause of a large commercial fire at one of our customer‘s premises. This necessary investigative process would have been hazardous for a person to carry out and take considerably more time. Using a Drone meant the claim proceeded more quickly which is clearly good news for the customer.

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