Allianz Cornhill said profit before tax came in at a record...
Allianz Cornhill has said profit before tax was a record £239m - up 16% on the previous year.
The company said its combined ratio fell to 94.1% from 94.9% and highlighted the return to underwriting profit for its personal lines division. (99.2% agtainst 101.5% in 2005)
Andrew Torrance, chief executive, called the profit "highly satisfactory" and said that in the face of continued rating pressure, the reduction in the combined ratio was a "remarkable result".
Torrance was optimistic about performance in 2007 and said: “Looking ahead to 2007, it is good to see that economic reality has returned to the important personal lines motor market with rating increases being implemented to enable the market to return to acceptable levels of profit. We are taking advantage of these improved conditions to grow our private motor book once more.
"By contrast, the rating and the competitive environment in the commercial lines market remains challenging, particularly for good quality business. Underpinning results with prior year reserve releases can only go on for so long and my expectation is that insurers will look at their current accident year combined ratios and react by increasing rates to more appropriate levels during 2007."
He addded that the company will change its name from Allianz Cornhill to Allianz Insurance, in April 2007.
