Allianz UK first half profit rises 37%

Allianz UK made an operating profit of £86.9m in the first half of 2016, up 37% on the £63.6m it made in the same period last year.

The combined operating ratio (COR) improved by 1.7 percentage points to 96.3% (H1 2015: 98%), driven by improved underwriting performance in both commercial and personal lines.

The commercial COR improved by four points to 91.2% (H1 2015: 95.2%), which Allianz UK chief executive Jon Dye described as “an outstanding result”.

The personal lines COR improved by 2.7 points to 99.9% (H1 2015: 102.6%).

Gross written premium (GWP) fell by 4% to £1.1bn (H1 2015: £1.14bn), driven by an 8% drop in personal lines GWP to £520m.

Dye said personal lines GWP fell “because of the need to address the issues in our private motor book”.

Allianz announced plans to withdraw from direct home and motor business in April this year.

Commercial lines GWP was almost flat year-on-year at £578m. Dye said: “Growth has slowed during the second quarter but this reflects the prevailing market conditions and our appetite to trade remains strong.”

Summarising the half, Dye said that Allianz UK has seen a lot of change. Along with the direct home and motor exit, the company has also combined its personal and commercial units into a single trading division and announced a new governance structure.

Dye added: “Focussing on and delivering profit is a consistent year in and year out objective for this business. I am pleased that we have achieved this in the first half of the year during a period of considerable change.

“There is still plenty of work to do but I am confident that we have the clarity of focus, the structure and the people in place to make 2016 a successful year for the business.”