Allianz profitable growth continues
Allianz Insurance has reported ‘profitable growth’ despite what it describes as ‘intensive competition in key markets’.
Chief executive officer, Jon Dye, released a statement on Allianz’s progress, ‘I am pleased to report that Allianz has maintained its long- term delivery of profitable growth despite intensive competition in key markets. Premium growth at 2.7% coupled with a Combined Operating Ratio of 97.9%, is a steady level of performance. We are growing our business and to help support that strategy we have entered into a reinsurance quota share arrangement with our sister company Allianz Re. This has the effect of reducing our Q3 profit figure by £11.1m.’
He continued, ‘The absence of severe weather claims so far this year has increased the competitive intensity of the Commercial market. Achieving GWP growth of 2.3% and a COR of 94.3% in this environment demonstrates the disciplined and long-term approach to pricing shown by our Underwriters.’
‘Our Engineering business continues to deliver consistently good financial results. This business has undergone an important period of development and as a result now employs more trained Engineers and its pricing and segmentation capability have been enhanced. In addition, as part of its modernisation programme, our 450 Lift and Crane Inspection Engineers will shortly be using their new handheld electronic devices to generate customer service improvements, increase productivity and improve the safety of our employees. I believe Engineering is now the market leader in delivering on time inspections for its customers.’
‘Our Retail business has grown by 2.9% compared to this time last year. As we reported in Q2, strong financial performances are being delivered by Petplan and by Allianz Legal Protection.’
‘We have taken corrective action in Retail private car and increased premiums well ahead of claims inflation but it will be next year before the full effects of this measure show through in our results.’
‘Allianz UK has once again delivered profit and growth and this has been a consistent feature of our performance for some years. The importance of solid foundations for future success is a key theme of the Group’s recently announced Heritage and Renewal programme led by our group CEO, Oliver Baete.’
‘Building for the future now when the group is already in a strong position shows that success is never taken as a given. The starting point for the group’s agenda is true customer centricity: putting the care of our customers at the heart of everything we do.The group has also identified digital by default, technical excellence, growth engines and inclusive meritocracy as other key areas of focus. Allianz UK is well aligned with these priorities. We will build the themes of the Renewal Agenda into our strategy going forward and I believe we can look forward to the future with considerable confidence,’ added John.
Business Highlights:
- GWP up 2.7% over same period in 2014
- Combined Operating Ratio at 97.9%
- Strong performance achieved in profitable lines
Group Results Q3 2015 Q3 2014
- Gross Written Premium £1,685m £1,641m
- IFRS Operating Profit £102.8m £117.2m
(before tax and reinsurance quota share)
- Combined Ratio 97.9% 96.9%
Divisional Results Breakdown Q3 2015 Q3 2014
Commercial:
- Gross Written Premium £824m £804m
- Combined Ratio 94.3% 94.2%
Retail:
- Gross Written Premium £861m £837m
- Combined Ratio 102.7% 100.2%
