Allianz Group announces revenue of £2.9bn in the UK

Authored by Allianz

Half year results for Allianz Group reveal that the business continues to grow in the UK, achieving a total revenue of £2.88bn - up 12.9% on previous year.

Allianz’s insurance businesses in the UK

Allianz Global Corporate & Specialty UK continued its trend of positive development, growing its gross written premium by over 30% on the equivalent period in 2021, driven by new business development and continuing rate momentum. Allianz Holdings achieved strong levels of growth across the business in H1. Euler Hermes rebranded as Allianz Trade in the first half of the year. The core business of trade credit insurance saw positive commercial evolution through a strong performance in both new business and client retention. Following recent client wins, Allianz Partners UK is focused on implementing this new business in a post-Covid world, ensuring it continues to deliver great experiences to clients and customers.

Allianz Holdings delivers strong growth for first half of 2022

Allianz Holdings plc has announced 5% growth in the first six months of the year with a Gross Written Premium (GWP) of £1,957m.

Allianz Holdings

Commenting on the figures, Colm Holmes, CEO Allianz Holdings (pictured), said:

“I’m pleased with Allianz’s performance. We’ve seen strong trading in the first half of the year, although this was impacted by motor claims returning towards pre-pandemic levels, the February storm events and increasing inflationary pressures.

“As we enter the second half of the year, we’re doing the right things to navigate market challenges and we remain in very good shape with a strong set of results behind us. The scale and diversity of our business means we’re well positioned for profitable growth. With a continued focus on profitably, expense management and a clear risk appetite, I’m confident in Allianz’s ability to steer our way through these turbulent conditions.”

Business Performance:

Allianz Holdings delivered good levels of growth across the business with a 5% increase in revenue to £1,957m (HY2021: £1,863m). Operating profit fell by 42% to £99m (HY2021: £170m) and the Combined Operating Ratio (COR) deteriorated to 97.2% (HY2021: 91.7%). A key driver behind the fall in profitability was the continued increase in motor claims frequency as drivers returned to the road after lockdown. The result was also impacted by the cost of the severe February storms which amounted to £50.1m across Allianz Commercial and Allianz Personal. All parts of the business are also seeing the unexpectedly high rate of inflation, which is running ahead of our predictions and pricing assumptions at the beginning of the year, hit Allianz’s profits.

Allianz Personal achieved an increase in revenue with GWP at £1,263m, up 3% compared to HY 2021, with direct own brand in-force policies also growing 3%. This was due to a particularly strong performance from Petplan, which saw greater focus and alignment by moving into the Allianz Personal family of brands, and the successful launch of Flow, LV=’s digital only motor proposition.

The LV= Retail business also saw good growth and retention following the implementation of the FCA General Insurance Pricing Practices, which has led to a reduction in people shopping around and a significant number of customers renewing. Growth, however, was offset by lower new business volumes in the home market.

Overall, the Allianz Personal business is seeing the benefits of its multi-distribution and multi-brand approach, combined with improved pricing capability.

Allianz Commercial delivered growth of 10% year-on-year and a GWP of £694m, driven by a strong underwriting performance and the success of its new regional structure which brought together the Commercial Broker Markets and the Engineering, Construction & Power (ECP) businesses.

Commercial Property performed particularly well, achieving good levels of profit and growth as the benefits of previous remediation work on the portfolio came to fruition. The Engineering business continued to grow and deliver strong results, while Allianz is also starting to see the benefits of its investment in SME digital transformation. Commercial new business was ahead of plan as a result of good targeting, clarity of risk appetite and the mobilisation of trading teams.