Profits up 6.1%, but GWP on personal side remains level amid home and motor business transfer to LV=
Allianz UK reported a 6.1% increase in first quarter profits to £39.8m that sets up the insurer for a “promising” financial year.
“The first quarter’s performance sets the business up for a promising financial year and we are determined to maintain our focus on delivering for our broker partners and customers,” said UK chief executive John Dye.
The results showed underlying growth of 3.2%.
The results were split between the group’s personal and commercial side of the business.
On the personal side, GWP remained at the 2017 level, which was put down to the firm’s efforts to transfer the home and motor business to LV=.
However, there was a 4% reduction in the combined operating ratio, which Dye said was a “very good performance.”
On the commercial side, underlying GWP increased by 6% and the combined operating ratio improved by 2.9%.
Compared to last the same period of last year commercial GWP and the combined operating ratio was slightly down.
However, Dye explained this was because in prior years the engineering inspection fee income had been included within GWP. Following a review this has been removed from the 2018 Q1 results, but remains in the 2017 results.
Dye said: “The first quarter’s performance sets the business up for a promising financial year and we are determined to maintain our focus on delivering for our broker partners and customers.
“We pride ourselves on maintaining a consistent strategy and building relationships for the long-term.
“As we enter the remainder of the trading year, we believe brokers will reflect on the positive approach Allianz takes to running its business and the benefits our consistent approach brings for their own organisations.”
Full Q1 results
Allianz UK Financial Results Q1 2018 Q1 2017
• Gross Written Premium (GWP) £ 542.7m £ 545.0m
• Operating Profit £ 39.8m £ 37.5m
• Combined Operating Ratio (COR) 95.2% 96.7%
• GWP £ 291.4m £ 293.6m
• COR 95.1% 97.7%
• GWP £ 251.4m £ 251.5m
• COR 93.9% 97.9%