Allianz UK continues solid performance with 3% profit rise

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Combined ratio rises slightly to 96.8%

Allianz Insurance chief executive Andrew Torrance

Allianz UK made a first-half 2012 operating profit of €92m (£72.4m), up 3% on the €89m it posted in the first half of 2011, according to figures released by its German parent company today.

The combined ratio increased by 0.6 percentage points to 96.8% (H1 2011: 96.2%), driven by a 0.8 point increase in the loss ratio to 64.7%. It is likely this loss ratio increase was caused by the UK floods.

Gross written premiums at Allianz UK for the first half of 2012 increased 12% to €1.2bn (H1 2011: €1.1bn).

In the second quarter alone, UK operating profit increased 2% to €50m (Q2 2011: €49m), on the back of a 13.6% rise in gross written premium to €606m (Q2 2011: €533m). The combined ratio was 96.4% (Q2 2011: 95.4%).

Allianz attributed the second quarter UK premium growth to positive currency translation effects and an increase in motor business volume. It added that rate increases had a positive effect of 0.9%.

Allianz Group’s non-life business saw its operating profit increase by 15.5% to €2.3bn (H1 2011: €2bn), despite a 16.3% drop in second quarter profit to €1.1bn (Q2 2011: €1.3bn). The combined ratio improved to 96.8% (H1 2011: 98.1%)

Allianz UK H1 results in €m (compared with H1 2011)