Commenting on the figures, Colm Holmes, CEO Allianz Holdings, said:

“Undoubtedly 2022 was a tough year for the industry and trading performance was impacted by several large weather events and ongoing inflationary pressures which have impacted profitability. Despite these challenges, we have still achieved growth across our business and these results demonstrate that we have the scale and diversity to withstand even the most difficult of market conditions.”

During a year of economic uncertainty and challenging trading conditions, Allianz Holdings delivered growth across the business with a 4.4% increase in revenue to £3,966m (FY2021: 3,798m). Operating profit fell by 58% to £132m (FY2021: £318m) and the Combined Operating Ratio (COR) deteriorated to 99.2% (FY2021: 93.2%), driven mainly by the impact of double-digit claims inflation, several significant weather events and the company’s exposure to the motor market.

All parts of the business continued to be impacted by the rapid rise of inflation. Overall, Allianz experienced gross inflation of 9.5% ¹, which was ahead of predictions and pricing assumptions at the beginning of 2022. The motor market in particular faced a combination of challenges including labour shortages, rising repair costs and supply chain pressures, all of which continue to present an issue.

The total cost of the damage caused by the extreme weather events of 2022, including the February storms, subsidence from one of the hottest and driest summers and the December ‘Freeze event’ was £106m – net of reinsurance. Allianz’s prudent approach to reinsurance has benefitted the business and managed the overall impact.

From a Personal Lines perspective, Allianz delivered an increase in revenue with GWP up 3.6% to £2,635m (FY2021: £2,543m), with a strong performance from Petplan which delivered GWP of £657m (FY2021: £597m) and Flow delivering growth in line with expectations, reflecting the strength and diversity of Allianzʼs product portfolio. The business also saw strong retention following the implementation of the FCA General Insurance Pricing Practices.

Meanwhile, Allianz Commercial achieved growth of 6.4% with GWP of £1,330m (FY2021: £1,250m). This was due to the Mid-Market business performing well and delivering a 14.3% increase in revenue with GWP of £653.7m. In addition, the Engineering Inspection business saw strong levels of growth with net income of £94m (FY2021: £88m).

2022 also saw Allianz continue to build on its strength in the Electric Vehicle (EV) market and maintain its position as one of the largest insurers of electric vehicles in the UK. ElectriX, a new service from LV= which helps drivers lease, charge and insure an electric car, performed well and is set for good growth in 2023. Meanwhile, Allianz Commercial expanded on its EV offering for fleet customers with the launch of a new inspection service for car chargers, which means that all of its Engineer surveyors are now trained to inspect mode 3, electric vehicle charging equipment located in commercial and industrial locations.

Throughout 2022, broker and customer satisfaction remained at exceptionally high levels, with research ² confirming Allianz is no.1 in the market for Commercial Mid-Market, Petplan, LV= and Engineering Inspections. 

From a people perspective, Allianz Holdings was ranked 14th in the Inclusive Top 50 UK Employers List, in recognition of its continued dedication to workplace diversity and inclusion.

The business also bolstered its leadership team throughout 2022, with executive appointments including Allianz Holdings chief operating officer, Ashish Patel and chief compliance and corporate affairs officer, Alison Rayner, who joined the business in February 2023. Allianz Commercial also appointed David Carey to the newly created position of managing director, mid-market, effective from April 2023.