ALLIANZ INSURANCE GROWS STRONGLY AND SEES PROFIT FIGURE BACK ON TRACK

Group Results                                                       HY 2014                     HY 2013

Gross Written Premium                                           £1093.4m                    £996.3m

IFRS Operating Profit (before tax)                            £64.3m                        £86.0m

Combined Ratio                                                        98.1%                          95.7%

Divisional Results Breakdown                               HY 2014                      HY 2013

Commercial:

Gross Written Premium                                            £559.6m                      £534.5m

Combined Ratio                                                        96.6%                         97.4%

Retail:

Gross Written Premium                                            £534.5m                      £461.9m

Combined Ratio                                                       100.3%                        94.8%

Statement from Chief Executive Officer, Jon Dye

A strong performance in Q2 saw Allianz’s growth accelerate, with GWP of £1093.4m putting the company 9.7% ahead of 2013 at the half year. Our overall Operating Profit rebounded after a first quarter hit by very poor weather and is virtually back on plan at the end of Q2. The Combined Ratio for both our Commercial and Retail Divisions improved from the position at the end of Q1 and we are on track to deliver our planned profit and growth figures for the year.

Commercial Division

GWP for our Commercial business has grown by 4.7% on 2013. Volume growth has been achieved across virtually all of our lines of business and whilst trading conditions remain difficult, we have managed to achieve rate strength in some challenging markets. Our Commercial COR of 96.6% has improved over two percentage points from the weather affected Q1 figure and is an improvement on 2013. Our focus on improving our pricing and segmentation capabilities continues as does providing clarity for our Brokers on risk appetite. As a result, we have seen the successful launch of our Retail and Wholesale proposition for the mid-corporate market, a refreshed Construction Project All Risk approach, the development of an International Fleet proposition and the further exploitation of our very successful QuoteSME trading platform with the release of an E-traded D&O product, all of which has aided retention, new business activities and profit improvement.

Retail Division

Our Retail GWP to the half year grew by 15.7% over 2013. This has been achieved by balanced and sustainable growth in both revenue and customer numbers across our broker, corporate partner and direct channels and our motor, home and pet accounts. The performance in motor was supported by the introduction of a more sophisticated pricing model. Our direct proposition - Allianz Your Cover - has performed particularly well on new business and now has around 200,000 customers. Our Corporate partnerships are also well ahead of 2013 with very positive contributions from the Sainsbury’s pet insurance product, which commenced in September 2013, and the motor account, through our relationships with the automotive manufacturers. Petplan continues to go from strength to strength with brand investment and strong new business trading in both animal welfare channels and online resulting in a steady increase in the number of protected pets and contributing towards a rise in GWP of almost 10%. Allianz’s Retail products are benefitting increasingly from a digitally enhanced customer journey, including the development of tablet and smartphone optimised websites and the introduction of online self-service functionality. Allianz Legal Protection continues to cope well with the changes in the legal environment and is running well ahead of plan with new After the Event propositions starting to trade in the market.

Other News

In July, I was extremely proud to collect the General Insurer of the Decade Award on behalf of Allianz at the British Insurance Awards. This unanimous decision by the judges recognised not only our consistent profitable growth performance over the last decade but also our commitment to training and professionalism in the industry, our focus on the customer and our record on innovation. I am convinced that success against each of these measures is in turn down to the quality of the individuals working at Allianz.

Conclusion

The adverse weather over the winter saw Allianz come to the aid of 18,000 of its customers, serving as a reminder of the critical role that insurance plays in protecting individuals and businesses. In Q2 we have pulled our profit performance back to plan with strong contributions from right across our portfolio. We have also succeeded in growing our GWP ahead of plan. These results serve to demonstrate that our five year profitable growth ambition is very achievable. Jon Dye, Chief Executive

Ends.

Notes for Editors:

1. 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 83 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 2013, around 148,000 employees in over 70 countries achieved total revenue of 110.8 billion euros.

 2. Media Contact: David Keel, Head of Communications
Work - 01483 552718
Mobile – 077771 794978
Email – david.keel@allianz.co.uk