Group Results Q1 2015 Q1 2014
- Gross Written Premium £ 555m £ 528m
- IFRS Operating Profit (before tax) £30m £25m
- Combined Ratio 97.7% 99.8%
Divisional Results Breakdown Q1 2015 Q1 2014
- Gross Written Premium £ 277m £ 276m
- Combined Ratio 96.8% 98.7%
- Gross Written Premium £ 278m £ 252m
- Combined Ratio 101.1% 102.5%
Statement from Chief Executive Officer, Jon Dye
Statement from Chief Executive Officer, Jon Dye
Business Results –
Allianz has made a strong start towards reaching our financial goals for the year. Achieving 5% growth in the quarter compared to the same period last year in very challenging market conditions is a commendable performance. The 97.7% Combined Ratio shows we are also delivering a strong underwriting profit and the absence of any major weather losses has been helpful.
The Gross Written Premium for the Commercial business has grown by 0.4% compared to Q1 last year. The commitment to profitably grow in Commercial remains a key part of our strategy and this result is a reflection of our trading tactics in the market which has seen competition intensify in an unsustainable manner during the quarter. We will continue to trade pro-actively with our broker partners whilst maintaining a disciplined approach to underwriting. This approach is reflected in the Commercial Combined Ratio which stands at an excellent 96.8%.
Last year it was announced that the business intended to grow in the mid-corporate market. I am therefore very pleased to report that our trading activity has generated 13% more GWP than at the same point last year and at premium levels we find acceptable.
The ambition to grow in the Financial Lines sector and broaden the e-trade product portfolio was supported during the quarter by the launch of Complete Professional Indemnity onto the QuoteSME and Acturis platforms. This is our second financial lines product and follows a successful six month pilot where listening and acting on broker feedback helped to shape the proposition. Brokers now have the flexibility to trade small premium business online quickly and efficiently and still be supported by our dedicated underwriting team in Maidstone.
Also during the quarter we have been working on our fourth mid-corporate proposition targeting the Professional Services sector. The official launch to brokers will take place later this month and will join our already established propositions for Wholesale and Retail, General Manufacturing and Metal Working and Precision Engineering.
We are offering new Commercial propositions and increasing our visibility in the market. We also have the advantage of being able to leverage our local presence via our branch network. All of these elements place us in a good position against the competition.
The Retail Gross Written Premium has grown by 10.0% compared to the same period in 2014. The Premium growth has been achieved right across the business and the 24% increase in the number of policies in force compared to the same period last year is also spread across the portfolio.
The Combined Operating Ratio reflects the challenging claims environment in the private motor market and the continuing investment we are making in our business in areas such as raising the brand, improving our digital capability and the addition of new corporate partnerships to our portfolio.
Strong contributions to our bottom line performance have come from Petplan and Allianz Legal Protection. Rates in the household and motor markets are highly competitive and we will grow selectively in those markets when we see profitable opportunities to do so.
It was announced during the quarter that Allianz had become the motor insurance partner for the Verex Group, providing pricing and underwriting for their vehicle manufacturer and dealer group insurance schemes. Verex focuses their insurance on the needs of vehicle manufacturers, their dealers, and customers, relying on web technology to drive their customer interactions. Their clients include Land Rover, Hyundai, Jaguar, Mazda, Mitsubishi, MG, Suzuki and Vauxhall. This is a significant deal for Allianz and it re-affirms our position as the largest corporate partner motor insurer in the market.
I am also delighted to announce an extension to the partnership with Sainsbury’s Bank for their pet business until 2019. The deal was first agreed in 2013 and now Sainsbury’s Bank has extended the contract based on the positive experience of working with us and the strong commercial performance of the account.
Allianz is a growing business and the focus remains on delivering ‘more of the same’ in 2015. The company is in a very strong position in the UK and our parent company is the most profitable insurance group in the world. Significant investment has been made in the business and the momentum has been maintained for the next leg of our journey to become a £3bn business in 2018.
- Allianz Insurance is one of the largest general insurers in the UK and part of the Allianz SE Group, the largest property and casualty insurer worldwide. Around 85 million private and corporate customers rely on Allianz's knowledge, global reach, capital strength and solidity to help them make the most of financial opportunities and to avoid and safeguard themselves against risks. In 2014, over 147,000 employees in more than 70 countries achieved total revenues of approximately 122.3bn euros.
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Allianz Insurance is one of the largest general insurers in the UK and part of the Allianz SE Group, the largest property and casualty insurer worldwide.