Jon Dye, CEO, Allianz Holdings, commented: “This is the first quarterly update of the enlarged Allianz Holdings Group, incorporating Allianz Insurance, LV= General Insurance and the general insurance business acquired from Legal & General. We opened a new chapter for our business and it would be no exaggeration to say that this coincided with the start of an unprecedented period for the market and the country, as we live through the largest insured event in history. I am tremendously proud of the way in which our colleagues across the business have performed against this backdrop. We mobilised quickly and effectively to achieve a remote working model which has maintained service levels to our customers and brokers, and we continue to adapt to meet the demands of this evolving situation. As part of our commitment to our people, we announced that no one would be furloughed.
“The company has doubled in size to become the second largest general insurer in the UK and achieved substantial underlying growth in both Commercial and Personal lines. However, the quarter also saw significant claims for storms and floods amounting to £68m, and the slowdown in new business due to COVID-19 was already being felt at the end of Q1.”
Steve Treloar, CEO of LV= General Insurance, added: “At LV=, we pride ourselves on always trying to do the right thing for our people, customers, suppliers and the communities we operate in. Our people work tirelessly every day to ensure our customers are put at the heart of everything they do and never has that been more true than it has been in these last few weeks, as we’ve all faced the challenges presented to us by COVID-19. From a performance perspective, the strength of our brand and the strong foundations we have as a business have resulted in us being able to deliver a good result, achieving solid growth in what continues to be an extremely competitive market.”
Trading Update Q1 2020 Gross Written Premium
Q1 2020 Q1 2019 Variance
Allianz Holdings plc £1026m £ 494m 107%
Allianz Insurance £ 514m £ 494m 4%
LV= General Insurance £ 512m* £ 375m** 37%
*Includes £102m from L&G General Insurance
** as reported by LV= General Insurance (prior to change in control)
The Allianz Commercial lines book grew by 7% in Q1, with a particularly strong performance in the Motor book. However flood related claims on the Motor Trade, Property and Packages accounts amounted to £43m, which was significantly above our provision for natural catastrophes.
Petplan continues to perform well, growing by 6% to help counterbalance ongoing claims inflation in the pet insurance market and the Engineering, Construction & Power insurance business has also achieved healthy growth.
Where businesses have purchased cover that enables them to claim for Business Interruption due to COVID-19, we’ve made over 200 interim and final settlement payments.
We have created the Coronavirus resource hub with FAQs and useful information to support customers in managing their businesses through this crisis.
In broker markets we’re responding to adjustments to exposures, change of use and policy conditions and payment restructure requests in a flexible manner.
Recognising the changing needs of SMEs, we've taken steps including automatic extension of cover for working from home, a temporary extension of full cover where premises become unoccupied and flexibility in our change of business underwriting appetite when this is humanitarian in nature or to protect employment.
Our Engineer Surveyors have overcome particular challenges to take a lead in supporting the national response to the Covid19 epidemic by ensuring critical industries are able to operate with safe plant and machinery.
Within ten days of lockdown, Petplan achieved normal service and continues to pay 90% of claims within five working days, receiving a Trustpilot rating of 4.5 / 5.
To support our communities, we have doubled our colleagues’ paid volunteering hours and made a donation of £100,000 to the British Red Cross and the National Emergencies Trust Coronavirus appeal.
LV= General Insurance
Trading in the first quarter was positive, delivering £512 million in GWP which included £102 million from L&G General Insurance. This is up 37% from the prior year. The business is in good health and we continue to maintain good momentum.
Our business was impacted by Storm Ciara, Dennis and Jorge, resulting in 12,000 claims at a cost of £26 million.
We recently announced that we’re making £30 million available to our direct car and motorbike insurance customers through our Green Heart Support to help those who are experiencing financial difficulties as a result of coronavirus. The money is being made available due to the savings that we expect to make as a result of reduced claims during the lockdown.
We’ve been helping all customers, across direct and broker, to reduce premiums by temporarily changing the cover they have. We’re also not charging administration or cancellation fees and waiving excesses on claims for the hardest hit financially, as well as offering free enhancements to cover for customers who are NHS and key workers.
We’ve been supporting our partner supplier network through increased payments to some suppliers, including bodyshops, breakdown drivers and home contractors.
As part of a wider contribution to the community we also launched The Green Heart Difference, helping our employees support local communities.
We also gave the Royal College of Nurses a donation of £85,000 as they are a key partner.
There is much uncertainty around the UK’s short and medium term economic prospects and there will undoubtedly be recessionary impacts on the market resulting from COVID-19. Allianz is well-equipped to manage through the challenges of the future and to provide the products and services our customers demand.
Notes to Editors
Media Contact: David Keel, Head of Communications, Allianz Insurance
Mobile - 07771 794 978
About Allianz Holdings plc
Allianz Holdings plc is the non-regulated holding company which owns the principal insurance operations of Allianz SE in Great Britain.
The information contained in this press release relates to Allianz Insurance plc. Allianz Insurance plc is one of the largest general insurers in the UK and part of the Allianz Group.
The Allianz Group is one of the world's leading insurers and asset managers with more than 92 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 673 billion euros on behalf of its insurance customers. Furthermore our asset managers PIMCO and Allianz Global Investors manage more than 1.4 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we hold the leading position for insurers in the Dow Jones Sustainability Index. In 2018, over 142,000 employees in more than 80 countries achieved total revenues of 131 billion euros and an operating profit of 11.5 billion euros for the group.
These assessments are, as always, subject to the disclaimer provided below.
Cautionary note regarding forward-looking statements
This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.
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The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.