Allianz UK reported higher profits and an improvement to its core ratios for the year to December: The UK operations of the German insurer saw operating profit for the year rise to £121.3m from £96.2m in 2016.
Chief Executive Jon Dye said higher profits would have been met if it wasn’t for the Ogden discount. Dye disclosed that the losses arisen from the discount were £22m, which also cut for personal injury from 2.5% to minus 0.75%, a serious blow for the company
Allianz UK’s gross written premium (GWP) rose to £2.186 billion in 2017 from £2.141 billion the previous year, and the combined operating ratio improved to 97.8% from 99.2%.
Commercial lines GWP rose to £1.172bn from £1.109bn, with the COR improving to 94.7% from 95.7%. Meanwhile, Personal lines GWP fell to £1.014bn from £1.032bn, while the COR improved to 100.1% from 103.4%; which Dye described as a solid financial performance.
Dye hailed the higher profits and strong results, with an “excellent” underwriting performance. “The consistent year-on-year success of the commercial business is the outcome of having a clear trading strategy and delivering great customer service,” he said.
“The feedback from the broking community on the joint venture has been positive and during this period of operational change we will work hard to maintain the levels of service that have positively influenced the NPS feedback from brokers,” Dye promised.
2018, at cruising speed
He pointed out 2017 was a landmark year for the organization with the completion of a joint venture partnership with LV=, to which the broking community has given a positive feedback. Dye indicated that Alianz UK started a game-changing journey and he looks forward to 2018 with “great anticipation and excitement”.
The Chief Executive said these times are exciting for both businesses as they work together to establish a joint venture as UK’s third largest personal lines insurer and Allianz UK as a top three general.
Giulio Terzariol Chief financial officer of Allianz SE, added: “The Group entered 2018 at cruising speed, placing our three-year performance targets within reach. We are confident that Allianz is well positioned to deliver strong financial results again this year. The Group aims to achieve an operating profit of 11.1 billion euros in 2018, plus or minus 500 million euros, barring unforeseen events.”