- Gross Written Premium up by 4.2% to £1,139m
- Combined Ratio stable at 98.0%
- Strong growth in the most profitable product lines
Group Results HY 2015 HY 2014
Gross Written Premium £1,139m £1,093m
IFRS Operating Profit (before tax) £56.5m £64.2m
Combined Ratio 98.0% 98.1%
Divisional Results Breakdown HY 2015 HY 2014
Gross Written Premium £574m £559m
Combined Ratio 95.3% 96.6%
Gross Written Premium £565m £534m
Combined Ratio 102.5% 100.3%
Statement from Chief Executive Officer, Jon Dye
Allianz grew profitably in the second quarter of 2015, continuing the trend of quarter one and the whole of 2014, and in line with our ambition to grow the business to £3bn GWP.
Growth of over 4% and a Combined Ratio of 98% represent a good result in a challenging and competitive market. However, this growth has been tempered by market conditions, as our priority remains to deliver an acceptable level of profitability as we grow.
The Commercial book grew by 2.5% compared to the first half of 2014. This growth was achieved whilst improving the margin over both the first quarter of 2015 and the performance in the first half of 2014.
This is an extremely pleasing result for the first six months of 2015, achieved in viciously competitive market conditions. However, the emphasis will remain on managing the business for the long term and supporting our broker partners through a strong branch network. Our approach has been underlined by the introduction of the latest new proposition for the mid-corporate market – All Machinery – providing customers with better protection against damage to specialist machinery items, including cranes and forklift trucks. This is the fifth in a series of new products for our commercial customers with more to follow later in the year. The four products already launched are contributing to our increase in mid-corporate new business levels.
Allianz Engineering continues to produce good results and is improving the service offered to our inspection customers by dramatically changing its business model. Our engineering modernisation programme will see handheld devices replacing traditional paper-based reporting for our 600 Engineer Surveyors, generating significant improvements to customer service and productivity. We are on track to consistently provide all of our inspection customers with on time delivery by October, which will create a unique advantage in the market. Our service position is the best we have ever delivered, as recognised by consistent feedback from our brokers.
Retail GWP grew by 5.7% over 2014. This growth was almost entirely in our Animal Health, Legal Protection and Corporate Partner books, which continue to deliver a strong profit performance.
The Retail Combined Ratio of 102.5% reflects the challenges and competitive dynamics experienced in the private car market. We have been increasing rates ahead of claims inflation all year and we will continue to slow down growth in private car until the loss ratio reaches an acceptable level. It remains to be seen whether the hardening in the market is a trend or a temporary adjustment.
We are continuing to invest to improve the customer experience by offering enhanced digital capability. It is a strategic imperative that we digitalise our business and our investment in technology is at record levels, having increased by 40% over the last two years.
Quarter two saw the introduction of a new-look website, optimised for all devices. This gives customers the ability to self-serve and to contact us by methods to suit their lifestyle, including web chat and social media. Our digital investment will continue to benefit all areas of our business through programmes including engineering modernisation and the QuoteSME platform for small business.
In conclusion, Allianz is continuing to make good progress. There is strong growth in the most profitable areas of the business and action has been taken to address the issues in the private car account. Looking ahead, we will continue to invest in the systems and technology necessary to provide our customers with the products and services they require and will continue to manage our portfolio for long-term profitable growth. Ends.
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 85 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 2014, over 147,000 employees in more than 70 countries achieved total revenues of approximately 122.3bn euros.
2. Media Contact: David Keel, Head of Communications
Work - 01483 552714
Mobile – 07771 794978
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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.