- Operating Profit up 17.7% over prior year
- Combined Operating Ratio 1.0% lower
- New structure successfully implemented
- Withdrawal from direct car and home completed
- The AGF Employers and Public Liability business successfully sold
Company Results YTD Q3 2016 YTDQ3 2015
- Gross Written Premium £ 1614.8m £ 1,685.3m
- IFRS Operating Profit £121.0m £102.8m
- Combined Ratio 96.9% 97.9%
Statement from Chief Executive Officer, Jon Dye
I am pleased to report that Allianz continues to deliver a strong financial performance.
The business has delivered a 17.7% increase in profit over prior year and a Combined Operating Ratio (COR) of 96.9% which are pleasing results. The Gross Written Premium (GWP) figure at the end of the quarter is down on the previous year largely because of the decision to withdraw from the direct motor and household markets.
At the end of the third quarter, the Commercial GWP stood at £829.8m, which is slightly up on the same period last year. The Commercial COR has been at an excellent level all year and at the end of the quarter stood at an impressive 91.5%. There are no signs of a let up in the competitive intensity in this market. In the prevailing market conditions, my message to the broking community is that Allianz has the propositions and the desire to trade for the long-term benefit of our customers.
Engineering continues to deliver top line growth compared to last year (+3.0%) and is delivering a good level of underwriting profit.
In Personal, the GWP at the end of the quarter stood at £784.9m and the COR stood at 101.1% which is expected following the decision to withdraw from the direct home and motor markets.
The business has addressed the issues in its personal broker motor book and I would like to thank the broker community for their support during what has been a challenging but absolutely necessary process. This account is now in profit and we are likely to grow the book if the present market conditions persist.
Petplan continues to deliver a pleasing level of profit and growth as it celebrates 40 years of protecting the nation’s pets. Petplan is the clear market leader with revenues in excess of £350m and protects more than 1 million pets.
In addition to celebrating a birthday, the quarter was also noteworthy for reaching an agreement to extend the existing relationship with The Vet Group to become the preferred pet insurance provider of the Pets at Home Retail division, the UK’s largest specialist pet retailer. Petplan also received the Brand Partnership of the Year’ award at the prestigious Screen Awards for its advertising partnership with The Secret Life of Pets movie.
The Petplan brand is not only very well known, it also stands for excellent customer service and a passion for the animals it protects. The acquisition of Petplan in1996 has proved to be a very shrewd piece of business and I expect Petplan to continue to make a positive contribution to Allianz’s performance.
Our award-winning Scholarship Programme has gone from strength to strength over the past five years. Nearly 200 brokers have received first-class tuition and many have achieved their CII Diploma in Insurance in just 18 months. Recruitment is now open to 30 brokers to start the programme in January next year. Our Scholarship Programme reflects our ongoing commitment to leading the industry’s professionalism agenda.
I am also pleased to share the news that Allianz Insurance has been officially awarded the Carbon Trust Standard in recognition of reducing the company’s CO2 emissions linked with our business operations. This is the fourth time we‘ve achieved the Standard since 2010. In the last decade, we have reduced CO2 emissions per employee by 58%.
We have successfully executed considerable change during the quarter and I am pleased to report that the business has kept the promises it made. Restructuring the business from two trading divisions into one Commercial and Personal approach to market as well as the creation of a new Technical team took just three months to complete. During this period of significant adjustment, I am pleased to report that the business has maintained our usual high standard of service to brokers which has been reflected in their feedback.
As we enter the final quarter we are well placed to deliver on our financial objectives for 2016.
I believe that a business that delivers on its promises is a business that brokers can trust when it comes to making decisions about which insurer is the right one for their customers.
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 2015, over 142,000 employees in more than 70 countries achieved total revenues of approximately 125.2bn euros.