ALLIANZ ON TRACK TO HAVE A STRONG FINANCIAL YEAR IN 2014

Group Results                                             Q3 2014                       Q3 2013

• Gross Written Premium                           £1640.9m                   £1459.7m

• IFRS Operating Profit (before tax)          £117.2 m                    £128.7m

• Combined Ratio                                       96.9%                         95.7% 

Divisional Results Breakdown                   Q3 2014                        Q3 2013

Commercial: 

• Gross Written Premium                          £805.1m                       £763.1m

• Combined Ratio                                     94.2%                            97.0%

Retail:  

• Gross Written Premium                          £836.5m                      £ 696.6m

• Combined Ratio                                      100.2%                         94.5%

Statement from Chief Executive Officer, Jon Dye

I am pleased to report that the company’s performance to the end of the third quarter is in line with our strategy to profitably grow the business. To emphasise this point, our combined ratio stands at a very healthy 96.9%, we have grown our revenue by 12.4% compared to this time last year and we have approximately 200,000 more customers than we had at the start of the year.

We believe that in order to be a successful company it is important to put our customers at the heart of everything we do and to improve our processes based on customer feedback. Net Promoter Score (NPS) is a globally recognised measure of customer service and we carry out this research amongst brokers every year.

This year’s NPS results have confirmed that we have retained the top position with brokers for our Engineering and Retail businesses. In addition, we have widened the gap as the number one provider between ourselves and our key competitors in Commercial.

I would also add that the results of our NPS research are in line with other market feedback which is helpful validation of our own research.

These results demonstrate the sustained nature of our positive reputation with brokers for our products, services and the quality of our people.

Commercial Division

The revenue in our Commercial business has grown 5.5% compared to the same period in 2013 and the combined ratio has also improved by 2.8% to an impressive 94.2%.

We have delivered good GWP growth across all classes of commercial business, improved both our new business and customer retention levels and delivered underwriting profit from a wider base of brokers. 

In July we launched the second in our series of sector specific mid-corporate product offerings – General Manufacturing - which will provide customers with easy access to the extensive range of products and services that the global Allianz business can provide to protect and grow their businesses.

Our market leading Engineering and Small Business offerings have continued to grow strongly as we invest in improved digital capability and service.

Retail Division

Strong revenue growth has been a feature across all lines in the Retail business with the overall GWP growing by 20.1% compared to the same period last year.  The combined ratio has also improved by a pleasing 2.3% to 100.2% since the end of the first quarter. This financial performance reflects the significant investment we have put into our digital capability in order to improve the customer experience across our Retail business.  

We have experienced good growth in both motor and household through the Retail Broker channel and the performance of our Corporate Partner business during the quarter was also very encouraging with GWP up 36% over the previous year.

Pet Plan continues to perform strongly with revenues up 11.0% compared to last year. Strong trading via the internet has been a feature during the quarter and I am delighted to announce that the business passed a significant milestone of one million protected pets.

Our direct business has delivered growth in line with our aspirations given the challenging conditions in the private motor market. Our continued investment in raising brand awareness and on broadening our digital capability to make it easier for people to do business with us via smart phones and tablets, for example, is having the desired effect.  

Allianz Legal Protection is in an encouraging position having built some strong new propositions and GWP is up 20.0% against plan.

Our People

I am delighted to say that we have achieved our best ever results for the Chartered Insurance Institute (CII) exams.  86% of our 421 exam entries were successful, including 50 distinctions, and we had a record number of people qualifying for the Advanced Diploma.  This pass rate compares to 84% for the same period last year.  Whilst no precise figures are published, we believe our results to be around 25% to 30% above the industry average.

Conclusion

As we enter the final quarter of this year I am satisfied with what we have achieved so far this year which reflects the hard work and expertise of our people.

Jon Dye, CEO
Allianz Insurance

Ends.

Notes for the Media

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.

As at the end of December 2013, the Allianz Group employed 148,000 people in over 70 countries and in the fiscal year achieved a total revenue of 110.8 billion euros.

2.  For further information please contact:
Mark Bishop, Group Communications Manager
Contact Telephone Numbers:
Work: 01483 552731
Mobile: 07802 925053
Email: mark.bishop@allianz.co.uk