Financial highlights compared to end of year 2012:
· Gross Written Premiums up 2.7%
· IFRS operating profit up 5.6%
· Combined ratio improves 0.4%
Group Results Breakdown: EoY 2013 EoY 2012
Gross Written Premium £ 1,931.4m £1,879.8m
IFRS Operating Profit (before tax) £ 170.5m £ 161.5m
Combined Ratio 95.9% 96.3%
Divisional Results Breakdown: EoY 2013 EoY 2012
Gross Written Premium £ 1,000.7m £ 974.1m
Combined Ratio 96.3% 97.9%
Gross Written Premium £ 930.7m £ 905.7m
Combined Ratio 96.1% 94.2%
Statement from Chief Executive Officer, Jon Dye
I am very pleased to report that over the last 12 months, Allianz Insurance has achieved profitable top line growth as well as delivering an improved underwriting performance.
Revenue grew by 2.7 per cent, whilst at the same time the profit performance improved by 5.6 per cent. The Combined Operating Ratio improved by nearly half a percentage point to 95.9 per cent, from an already excellent 2012 figure of 96.3 per cent.
These are an outstanding set of numbers and it is worth remembering that they have been achieved in macro economic and market conditions that were far from easy for our underwriters and claims teams.
Top line growth of 2.7 per cent was achieved in this part of the business. However, the stand out figure is the 1.6 per cent reduction in the division’s Combined Operating Ratio. This performance reflects my belief that Allianz has the best commercial underwriters in the market and they have, once again, shown their expertise to good effect.
There were strong signs during the second half of last year that the commercial market’s appetite for rate increases that exceeded the rate of claims inflation had weakened. I hope that the extreme weather events towards the end of last year, and now into February of this year, will create a more receptive market for achieving premiums that provide sustainable levels of acceptable profit.
Both the Commercial Motor and Motor Trade accounts had an excellent year for growth, and they also delivered solid levels of underwriting profit. The Property account also delivered a pleasing level of underwriting profit, but growth remained flat compared to 2012.
The 9.2 per cent GWP increase in new business in the Packages account, which includes the bancassurance partnerships, was the highest ever. The state of the art QuoteSME platform for packages also grew GWP by 26.6% compared to prior year.
The revenue performance of the Engineering insurance business increased slightly over 2012 and the profitability of the business, which includes both insurance and inspection portfolios, remained satisfactory.
The traditionally competitive conditions in the private car market were given extra stimulus in 2013 by the post LASPO pricing decisions taken by some carriers and this created challenging market conditions. Consequently, growth in the private motor broker portfolio was not as strong as planned at the beginning of the year, but we did achieve a pleasing level of profit. Allianz Your Cover was still able to drive good growth, but at a level which was slightly behind expectations.
The Broker Household account was able to achieve good levels of growth and did so profitably despite the poor weather seen in the last quarter of the year.
In September, the Sainsbury’s pet insurance partnership went live. This new relationship further underlines our ambitions in this space, and we are now the leader in the corporate partner automotive insurance market.
Petplan had another pleasing year, with both GWP and profit ahead of last year’s levels. The continued investment in the brand, coupled with strong trading via the Internet and through the animal welfare channels, have all played a part in the continuing profitable growth story of this business.
Some strong propositions have been built for our Legal Protection business and they are beginning to trade in the market. A clearer picture of their performance will emerge as we move through 2014.
2013 was a tremendous year for this organisation. Across every key benchmark the business sets itself, we have achieved a positive result.
Once again, the company’s financial performance speaks for itself as it has done for more than a decade.
More corporate partners have been added to our portfolio and we are now very firmly at the centre of the radar when major brands are looking for an insurance partner.
We outperform our competitors when it comes to customer loyalty, and this position is independently measured using Net Promoter Score methodology.
The Allianz brand is becoming more and more recognised and the company has a committed, stable and enthusiastic workforce.
It was an excellent year in terms of winning awards which demonstrates that the insurance industry also acknowledges the expertise of our people
When you add to that list of strengths, the fact that Allianz Insurance is part of the largest property and casualty insurer worldwide, my Management Board colleagues and I believe there is a compelling argument for the next phase of the company’s evolution to be focussed on ‘gearing up for growth’.
The company’s attention right now is on achieving results for our customers who have been hit by the recent severe bad weather. So far we have dealt with 2,650 household and 1,546 commercial claims.
The Claims teams are keeping in regular touch with our customers and we completely share their objective of settling claims as quickly as possible so that their lives can return to normal.
Notes For The Media:
- 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.
- For further information please contact:
Mark Bishop, Group Communications Manager, Allianz Insurance
Tel Office: 01483 552 731
Mobile: 07802 925053
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.