Allianz UK non-life profit up 5% in Q1

Allianz’s UK non-life business made an operating profit of €42m (£33.6m) in the first quarter of 2012, up 5% on the €40m it made in the same period last year.

The improvement came on the back of a 9.4% increase in gross written premiums to €568m (Q1 2011: €519m), according to Allianz group results released today.

Allianz UK’s combined operating ratio increased slightly to 97.3% from 97.1% as a 1.3-point increase in the expense ratio offset a 1.1% reduction in the loss ratio.

Group-wide, Allianz’s non-life business enjoyed a 79.3% surge in operating profit to €1.2bn in  the first quarter of 2012 (Q1 2011: €663m). The boost was caused by lower natural catastrophe losses. The group non-life combined ratio improved to 96.2%from 101.3%.

The Allianz group as a whole, including its life and health and asset management operations, reported a 40.4% increase in operating profit to €2.3bn (Q1 2011: €1.7bn).

“Allianz has put in a very good performance this quarter, following 2011 that was tough for the entire insurance industry,” Allianz chief financial officer Oliver Bäte said in a statement. “Despite the ongoing sovereign debt crisis, volatile markets and low interest rates, we continue to expect an operating profit for 2012 of €8.2bn, plus or minus €0.5bn.”