Allianz Group released its interim results this morning, which revealed a 4% surge in premiums at its UK insurance business, Allianz Cornhill.
by Tristan O'Carroll
Allianz Group released its interim results this morning, which revealed a 4% surge in premiums at its UK insurance business, Allianz Cornhill.
While gross premium income at Allianz Cornhill increased 4% in sterling terms during the first half of 2003, they fell by 5.7% to E1.3 bn in euro accounts.
Allianz Cornhill was able to report earnings after taxes of E141m (£99m).
The insurer said this performance was boosted by the development of its UK motor book. A statement said: "This moderate growth compared to the previous year reflects the development of the British automobile insurance market, which has already reached the peak of its cycle and permits no further price increases."
Overall Allianz Group's property and casualty division (p&c) recorded a E0.5bn (£351m) increase in premium income to E24.1bn (£1.6bn).
The group's p&c combined ratio improved to 97.1% from 102.2% with the company forecasting a ratio of below 100% for the full-year.
The claims ratio dropped during the first six months of 2003 by 3.2% to 71.4%, due to a more selective underwriting policy, it said.
Allianz chief executive Michael Diekmann said: "As promised, we are working very hard to improve our profitability and are very pleased that this is beginning to produce a positive impact on our results. In order to strengthen this early trend, we will continue to work with great discipline in all areas of the group.
"Our goals remain unchanged, i.e. to achieve a combined ratio in the property and casualty insurance business of below 100%.
In the second quarter of 2003 Allianz Group earned a profit of E622m (£437m).
