UK combined ratio rises 0.7 points to 96.4%

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Allianz’s UK general insurance business made an operating profit of €199m (£173m) in 2012, according to group results released today.  

The profit is 3% down on the €206m the UK division reported in 2011.

The combined ratio deteriorated by 0.7 percentage points to 96.4%. This was caused by an increase in both the loss and expense ratios. The loss ratio rose 0.5 points to 64.4%, while the expense ratio increased by 0.2 points to 32%.

Allianz group did not provide details for the UK dip in its results. It is likely to have been caused by the commercial business, however.

The UK arm revealed in its nine-month 2012 results that its commercial combined ratio had worsened by four percentage points to 99.1% because of increased claims activity, the summer floods and inadequate commercial pricing across the UK.

At the time, UK chief executive Andrew Torrance described the nine-month commercial combined ratio as “unacceptably poor”.

Allianz’s UK general insurance gross written premium (GWP) increased 10% to €2.3bn (2011: €2.1bn).

Fouth quarter performance

In the fourth quarter alone, Allianz’s UK general insurance business made an operating profit of €57m, down 11% on the €64m it made in the fourth quarter of 2011.

But the combined ratio improved by 0.5 points to 95% (2011: 95.5%). This was caused by a 4.6 point drop in the loss ratio to 61.6%, partially offset by a 4.1 point increase in the expense ratio to 33.4%.

GWP in the fourth quarter was up 3% to €551m (Q4 2011: €534m).

Allianz UK will release separate results in sterling on 25 February.

Allianz UK GI 2012 results in €m (compared with 2011)


Full year

  • GWP: £2,318m (£2,111m)
  • Operating profit: £199m (£206m)
  • Loss ratio (%): 64.4 (63.9)
  • Expense ratio (%): 32 (31.8)
  • Combined ratio (%): 96.4 (95.7)

Fourth quarter

  • GWP: £551m (£534m)
  • Operating profit: £57m (£64m)
  • Loss ratio (%): 61.6 (66.2)
  • Expense ratio (%): 33.4 (29.3)
  • Combined ratio (%): 95 (95.5)