Warning: You are using an outdated Browser, Please switch to a more modern browser such as Chrome, Firefox or Microsoft Edge.

Allianz ends 2018 in a strong and confident position

Posted: 15 February 2019

Swipe to view more

Allianz UK:
EOY 2018
EOY 2017
Gross Written Premium (GWP) £2,038.2m £2,108.0m
Operating Profit £172.9m £121.3m
Combined Operating Ratio (COR) 96.3% 98.1%

Swipe to view more

Commercial lines:
EOY 2018
EOY 2017
GWP £1,180.2m £1,093.9m
COR 94.7% 95.1%

Swipe to view more

Personal lines:
EOY 2018
EOY 2017
GWP £858.0m £1,014.0m
COR 97.9% 100.1%

Commercial

The GWP increase of 7.9% includes the LV= business that has been transferred in and the COR stands at a very respectable 94.7%, down 0.4% compared to the previous year. The underlying growth of 4.6% excluding the LV= transfers is also pleasing.

The transfer from LV= has gone smoothly thanks to the collective effort across the organisation, including the 200 people in the project team alone, and the support of our broker partners. The portfolio is converting at expected levels but there is no room for complacency and we are taking nothing for granted.

Engineering Construction and Power has benefitted from a significant investment in people and technology. The rebrand in October provided a platform to highlight its expansion into infrastructure specialisms such as renewable power and construction. Backed by a market leading service for health and safety inspections, strong growth is expected in 2019.

Personal

The transfer of business to LV= and its effects on the aggregate revenue has been referred to throughout 2018. The COR ended the year at 97.9%, a reduction of 2.2% compared to last year which is a good result. The underlying growth of 9.2% in the PL portfolio not transferred to LV= is also a good performance.

Petplan successfully delivered strong growth and a record profit. The expectation is that the business will go on performing well in 2019 because of its excellent reputation for claims handling, the strong relationship it has with customers and the investments made in technology.

"The Allianz Group investment in the joint venture will reach £713m when majority shareholder status is reached. This is a powerful statement of the Group’s belief in the future of the UK insurance market post Brexit."
Jon Dye, CEO, Allianz UK

Claims

Claims had a busy year helping customers following the severe weather events of 2018 as well as looking after business as usual claims. Delivering a first class claims service is a differentiator with brokers in an environment where customer demands are high. It is also important that brokers and customers are reassured about the commitment of the organisation to do all it can to combat insurance fraud. Last year Allianz saved £64.7m on claims through the application of anti-fraud measures. Catching fraudsters requires constant vigilance and should leaving the EU result in a significant economic downturn, the organisation will be keenly aware of the potential for insurance fraud to increase.

"Regardless of the direction of the UK’s exit, I am confident that the Group’s geographic reach as well as a collective determination to work together means Allianz will provide the insurance solutions needed."
Jon Dye, CEO, Allianz UK

Jon Dye concluded:

"I believe the business can look forward to 2019 and beyond with great confidence and I say this for a number of reasons.

"We are part of a large and powerful Group that serves 88 million customers worldwide. In the UK, Allianz Insurance has five million customers and that number is matched by LV General Insurance. The Allianz Group investment in the joint venture will reach £713m when majority shareholder status is reached. This is a powerful statement of the Group’s belief in the future of the UK insurance market post Brexit.

"I also believe we have the best people but this is not just my opinion. In 2018 we were voted Commercial Lines Insurer of the Year and received other awards in areas including claims and technology. This shows that the ongoing commitment to training and developing our people pays off both for them and their careers and for the business partners and customers they engage with.

"Importantly, we have a clear strategy which is aligned to the Allianz Group’s Renewal Agenda 2.0 announced on the Capital Markets Day in November 2018. The Group has incorporated a simplicity ambition for its operating entities which is designed to provide an even better service to our customers, reduce complexity, deliver for our employees and make ourselves even more productive. These are excellent ambitions and I look forward to reporting on our progress during the course of the year.

"The concerns over Brexit are considerable and the industry’s partners and customers are understandably looking for reassurance. Regardless of the direction of the UK’s exit, I am confident that the Group’s geographic reach as well as a collective determination to work together means Allianz will provide the insurance solutions needed.

"An uncertain macroeconomic environment plays to the twin strengths of trust and dependability which Allianz UK is known for and I believe we will make strong progress against our goals in 2019."

Jon Dye, Chief Executive Officer.

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 figures in this press release are all stated before the 40% Allianz Group quota share arrangement. The quota share is in place for capital management purposes. The local numbers will vary from those provided by Allianz Group largely because of fluctuations in the Sterling against the Euro exchange rate during the period.


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
Get notified as soon as we issue a new press release: