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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%

Commercial

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.

Personal

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.

Claims

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.

Engineering Inspection and Special Services

In prior years Engineering Inspection and Special Services were included within the GWP and COR numbers. This has been reviewed in preparation for the introduction of the new International Accounting Standard for Insurance Policies (IFRS 17) which is effective from 1st January 2021.

The GWP and COR figures shown for Q1 2019 and 2018 exclude Engineering Inspection and Special Services. The GWP and COR figures reported at Q1 2018 were inclusive of Engineering Inspection and Special Services.


The information contained in this press release relates to Allianz Insurance plc. Allianz Insurance plc is one of the largest general insurers in the UK and part of the Allianz Group.

About Allianz Holdings plc

Allianz Holdings plc is the non-regulated holding company which owns the principal insurance operations of Allianz SE in Great Britain.

About Allianz

The Allianz Group is one of the world's leading insurers and asset managers with more than 100 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing 790 billion euros on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage 1.7 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are amongst the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2020, over 150,000 employees achieved total revenues of 140 billion euros and an operating profit of 10.8 billion euros for the group.

These assessments are, as always, subject to the disclaimer provided below. 

Cautionary note regarding forward-looking statements

This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting 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, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.

No duty to update

The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.
*Including non-consolidated entities with Allianz customers.

Mark Bishop
Corporate Communications Manager
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