The Allianz Commercial lines book grew by 7% in Q1, with a particularly strong performance in the Motor book. However flood related claims on the Motor Trade, Property and Packages accounts amounted to £43m, which was significantly above our provision for natural catastrophes.
Petplan continues to perform well, growing by 6% to help counterbalance ongoing claims inflation in the pet insurance market and the Engineering, Construction & Power insurance business has also achieved healthy growth.
Where businesses have purchased cover that enables them to claim for Business Interruption due to COVID-19, we’ve made over 200 interim and final settlement payments.
We have created the Coronavirus resource hub with FAQs and useful information to support customers in managing their businesses through this crisis.
In broker markets we’re responding to adjustments to exposures, change of use and policy conditions and payment restructure requests in a flexible manner.
Recognising the changing needs of SMEs, we've taken steps including automatic extension of cover for working from home, a temporary extension of full cover where premises become unoccupied and flexibility in our change of business underwriting appetite when this is humanitarian in nature or to protect employment.
Our Engineer Surveyors have overcome particular challenges to take a lead in supporting the national response to the Covid19 epidemic by ensuring critical industries are able to operate with safe plant and machinery.
Within ten days of lockdown, Petplan achieved normal service and continues to pay 90% of claims within five working days, receiving a Trustpilot rating of 4.5/5.
To support our communities, we have doubled our colleagues’ paid volunteering hours and made a donation of £100,000 to the British Red Cross and the National Emergencies Trust Coronavirus appeal.
LV= General Insurance
Trading in the first quarter was positive, delivering £512 million in GWP which included £102 million from L&G General Insurance. This is up 37% from the prior year. The business is in good health and we continue to maintain good momentum.
Our business was impacted by Storm Ciara, Dennis and Jorge, resulting in 12,000 claims at a cost of £26 million.
We recently announced that we’re making £30 million available to our direct car and motorbike insurance customers through our Green Heart Support to help those who are experiencing financial difficulties as a result of coronavirus. The money is being made available due to the savings that we expect to make as a result of reduced claims during the lockdown.
We’ve been helping all customers, across direct and broker, to reduce premiums by temporarily changing the cover they have. We’re also not charging administration or cancellation fees and waiving excesses on claims for the hardest hit financially, as well as offering free enhancements to cover for customers who are NHS and key workers.
We’ve been supporting our partner supplier network through increased payments to some suppliers, including bodyshops, breakdown drivers and home contractors.
As part of a wider contribution to the community we also launched The Green Heart Difference, helping our employees support local communities.
We also gave the Royal College of Nurses a donation of £85,000 as they are a key partner.
There is much uncertainty around the UK’s short and medium term economic prospects and there will undoubtedly be recessionary impacts on the market resulting from COVID-19. Allianz is well-equipped to manage through the challenges of the future and to provide the products and services our customers demand.