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ALLIANZ INSURANCE MAKES A STRONG START TO 2012

Press release -

ALLIANZ INSURANCE MAKES A STRONG START TO 2012

Financial Highlights For Q1 2012:                                                                                            

  • Gross Written Premiums  up 6.8% over same period in 2011
  • IFRS operating profit up 1.4%
  • Combined ratio an excellent 97.1%
  • Allianz has now reported a sub 100% Combined Operating Ratio for 37 Consecutive Quarters

Group Results:                                      Q1 2012         Q1 2011

Gross Written Premium                    £ 473.6m         £ 443.5.m

IFRS Operating Profit (before tax)    £   34.9m         £   34.4m

Combined Ratio                                     97.1%              96.9%

 Divisional Results Breakdown                                                                                                                   

Commercial                                       Q1 2012          Q1 2011                                                                                                        

Gross Written Premium                    £ 253.3m         £ 254.0m

Combined Ratio                                    96.3%              94.8%

Retail

Gross Written Premium             £ 220.3m          £ 189.5m

Combined Ratio                             97.9%                99.7%

 

 Statement from Chief Executive Officer Andrew Torrance

We have made a strong start to the 2012 trading year.  I am very pleased that we have been able to grow both our top line and profit compared to the same period in 2011 in what continue to be testing and demanding market conditions that show no signs of easing.

Our Commercial Lines division’s GWP at £253.3M was stable relative to prior year, reflecting the tough market conditions.  Although the actual COR of 96.3 was attractive, the pure accident year performance of this business overall is at present below our targets.  Consequently, during Q1, we have reluctantly shed volume in poorer performing accounts whilst continuing to grow in the better performing Packages and Commercial Motor segments.  The Liability account has seen a marked deterioration in claims experience, driven in large part by recession related claims.  We are working to correct this, a task which will continue in the balance of the year.  Overall, we achieved rate strength of plus 4 percentage points in Q1, whilst maintaining good retention levels, a good performance reflecting well on our underwriters’ trading skills.

Our market leading Engineering insurance and inspection business also experienced tough market conditions as the macro economy continued to bump along the bottom.  Overall the account grew modestly at 3.1%, with growth in the fee based inspection segment more than compensating for some shrinkage in the insurance segment.  In total, the underwriting profit delivered continued to be attractive but margins need to be improved in the inspection segment, a further task on which we will be working for the rest of the year.

In Retail Division, our Broker account GWP is up 10.1% on prior year with private motor performing particularly strongly, up 22.2% in a market where rates have been disappointingly flat over the past few months.  In contrast, the Household account GWP shrank by 3.5% compared to Q1 2011 with market conditions remaining very competitive.  This continues an unwelcome trend first seen during the second half of last year where the market appears to be pricing on the basis that bad weather has been abolished!

In our Retail Corporate Partners business, I am pleased to report a GWP growth of 27.1% compared to prior year. Particular performance highlights are the motor account which doubled its

GWP compared to Q1 2011, driven by our successful partnerships with Volkswagen Audi Group and BMW.  The Lifestyle component of the account also grew well and was nearly 10% ahead of prior year. 

The division’s Animal Health business with the market leading Petplan brand grew GWP by 9.6% compared to prior year.  The small animal policy count reached a record 860k, reflecting the success of last year’s product re-launch and the division’s excellent customer service.

The Legal Protection business also had an excellent start to the year with GWP up 34.3% on prior year with the performance of the After The Event (ATE) account particularly pleasing.

In other news from across the business, I can report positive developments relating to our strategic objective of putting customers at the heart of our business.

In order to measure the company’s results for the customer, we use the respected Net Promoter Score (NPS) methodology for measuring customer satisfaction by asking how likely our customers would be to recommend us.

I am pleased to report that the latest round of NPS measurement carried out during Q1 2012  revealed that Allianz Retail performed very well in terms of positive broker feedback and achieved its highest ever positive score. Brokers attributed their positive scoring to improvements in our service offering, products and pricing.

Petplan also achieved an extremely positive NPS score that puts the business in the same bracket as consumer driven companies such as Apple and Amazon. For those customers citing the claims handling service as the main reason for their score, the NPS score was even higher which underlines the quality of Petplan’s claims service offering.   

I am also delighted to announce that after an intense tender process, the Board of Trustees of Battersea Cats & Dogs Home has re-appointed Petplan as its preferred provider of pet insurance.  Retaining this prestigious account will generate over £16m of premium over the next five years.
 
Commercial Division announced the launch of a new scholarship programme which actively supports employees at Chartered brokers or those with clear plans to become Chartered to achieve their CII Diploma. The scheme, which is the first of its kind in the industry, provides successful applicants with access to top class tuition and networking opportunities, as well as the chance to further develop their technical and industry knowledge while attaining their CII Diploma.

This initiative underlines our reputation within the industry for raising professional standards and our commitment to the broker community.

Allianz Engineering was also successful in winning the Inspection Service provider account for Marks & Spencer PLC for the UK and Ireland effective from1 April 2012.  This is a significant and prestigious business win for Allianz Engineering covering lifting and pressure plant and equipment at 590 Marks & Spencer stores, 15 office locations and their large national distribution centres. 

And finally, I am very pleased to report that one of our colleagues in India, Sreelakshmi Jayakamur, Project Lead at our Indian subsidiary, ACIS, received an award that underlines the success of our offshore operation.  Sreelakshmi was the winner of the Empowering Women in IT (eWIT) Excellence Award, a pioneering initiative highlighting the potential of women in the Indian IT industry.  

In conclusion, I believe 2012 is shaping up to be another challenging year for the economy, the insurance market and therefore for our business.  Achieving our planned financial results is going to be tough as both the Personal and Commercial Lines markets remain extremely competitive 

However, our top line continues to grow which, together with the profit figure delivered in the first quarter, confirms the underlying strength of our business.  Our profit and growth record over the last 5 years has seen us outperform all of our major competitors and the aim of the company is to continue to do just that in 2012.

Andrew Torrance

Chief Executive, Allianz Insurance

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Notes for the Media:

Allianz Insurance is one of the largest general insurers in theUKand part of the Allianz SE Group, one of the leading integrated financial services providers worldwide and the largest property and casualty insurer in the world. 

With approximately 142,000 employees worldwide, the Allianz Group serves approximately    78 million customers in more than 70 countries.

The mission of Allianz Insurance is to be the outstanding competitor in our chosen markets by delivering products and services that out clients recommend, being a great company to work for and achieving the best combination of profit and growth.

Contacts

Amy Yorston

Amy Yorston

Press contact PR Consultant 07794266474
Sian Baker

Sian Baker

Press contact PR Consultant 07891570995
Sara Robinson

Sara Robinson

Press contact PR Consultant 07918470463

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