Press release -
Allianz Q3 trading update: sustainable solutions for a well-balanced business
Allianz Holdings plc, the holding company which comprises Allianz Commercial and Allianz Personal, unveils its quarterly update for the three months ended 30 September 2021.
|Gross Written Premium (GWP)||YTD Q3 2021||YTD Q3 2020||Variance|
Financial and strategic highlights
- Revenues down due to lower premiums in competitive motor market
- Sustainable product and service solutions introduced with focus on electric vehicles
- Supporting customers hit by the July floods
- Restructure creates Allianz Commercial and Allianz Personal business units
As announced in July, our strategic restructure has created two distinct Commercial and Personal businesses, reflected in the presentation of this trading update. This has led to greater coordination and clarity, which has received positive feedback from the market.
Jon Dye, CEO, Allianz Holdings, said: “This update is being released as the eyes of the world are focused on COP26. It is therefore fitting that our activity in Q3 continued Allianz’s focus on sustainability in both operational practices and product development. While revenues are down, mainly due to lower motor pricing levels, our well-balanced business is well equipped not just to respond to the climate emergency but to accompany and support the transition to a low-carbon economy. Clients and partners can rely on our expertise and commitment.”
By the end of Q3 2021, GWP stood at £929m, down 4.2% compared to the same period in 2020. This is mainly due to a reduction in motor premiums, as lower claims frequency is being reflected in rates. We have continued to see further improvement in the pricing of our property and liability lines as we engage with customers and brokers on managing an uncertain risk environment. Our Engineering, Construction and Power (EC&P) business continues to show strong growth and we are now beginning to see emerging opportunities in other areas of the market.
Simon McGinn, CEO, Allianz Commercial, said: “This quarter saw further improvement in the performance of our business fundamentals, with good profitability flowing from commercial motor and EC&P, and property and packages improving despite some impact from the July floods. Economic volatility is creating a number of emerging trends which we are monitoring while we continue to pursue the prospects for growth we have identified in partnership with our brokers.”
“The initiatives we launched in Q3 have been geared toward a post-pandemic economy with a strong environmental focus. We enhanced our fleet products to provide cover for electric vehicles and we unveiled a sustainable procurement charter to prioritise suppliers who share our ESG commitments. To support our partners, we gave independent brokers free access to our legal helpline. This is the latest example of how we share our expertise and offer services to strengthen long-term relations with our broker partners.
“As claims continue to be a core aspect of our proposition to customers, the July floods saw us mobilise immediately to assist and quickly compensate our customers. For Covid-related Business Interruption, we have issued a final or interim payment for 93% of accepted claims, much higher than the industry average (68%). With inflationary pressures in the broader environment adding to those specific to insurance claims, we continue to work with our loss adjusters and other supplier partners to contain that trend on behalf of our customers.”
GWP in the first three quarters dropped slightly by 2.3% to £1.92bn compared to the same period in 2020. In LV= General Insurance (LV= GI), GWP was down by 5.9% to £1.48bn (Q3 2020: £1.57bn) as a result of falling premiums in an extremely competitive motor market. The Specialty business, which comprises Petplan, Home & Legacy and Allianz Musical Insurance, saw GWP increase by 11.5% to £444m (Q3 2020: £399m), primarily driven by growth in Petplan which recorded its highest ever GWP and best growth in five years as a result of people insuring more new pets.
Steve Treloar, CEO, Allianz Personal, said: “We continue to maintain our relentless focus on providing excellent customer service and supporting our colleagues, while ensuring we have a positive influence on society. Operationally, we are making good progress on the integration of our businesses that we have recently brought together in creating Allianz Personal. From a service perspective, we were proud to once again be recognised by Which? with them naming LV= GI as the winner of Insurance Brand of the Year. GoCompare also announced LV= GI as the best car insurance provider for customer service at its recent annual awards.
“As one of the largest insurers of electric cars in the UK, we further strengthened our breakdown capabilities with LV= Britannia Rescue partnering with LAR Traffic Services to launch a comprehensive electric car service to customers who break down in Central London.
“During the quarter, we supported the Family Action #CreatingHappyMemories toy appeal, which saw our people and claims suppliers donate around 600 toys and games to families in need. In recognition of the fantastic and tireless work the NHS has provided throughout the pandemic, we also supported the annual NHS Parliamentary Awards as a main sponsor. Finally, Petplan once again hosted its annual Pet Awards for customers, which celebrate the special relationship owners have with their pets.”
As we return to our offices with our new ways of working, Allianz Commercial will intensify broker interactions. At a time when energy provision has come front of mind, our upcoming products will cover solutions for energy storage and efficiency.
As for Allianz Personal, with the upcoming FCA changes coming into effect in January 2022, our focus naturally continues to be on ensuring we’ve implemented all the necessary changes in advance. We will also continue to progress the integration and closer alignment of our businesses as Allianz Personal.
Jon Dye concluded: “After eight years as CEO of Allianz Holdings, this is the last trading update I will be issuing. I am hugely proud of what the team has achieved. The revenues that we are reporting at Q3 2021 (£2.86bn) are almost double the result that we achieved at the beginning of my tenure in Q3 2013 (£1.46bn). Sincere thanks to all of my colleagues and all of our broker partners who have supported the business over the years. They can be proud to share in this profitable growth story and I am pleased to hand over a great business to Colm.”
Allianz Holdings will welcome Colm Holmes as CEO on 1 December.
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 including Allianz Insurance plc.
About Allianz Group
The Allianz Group is one of the world's leading insurers and asset managers with more than 100 million* private and corporate customers in more than 70 countries. 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 790 billion euros on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage 1.7 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are amongst the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2020, over 150,000 employees achieved total revenues of 140 billion euros and an operating profit of 10.8 billion euros for the group.
*Including non-consolidated entities with Allianz customers
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.
No duty to update 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.