Allianz H1 profits up 14%

Allianz Insurance’s profit rose by more than 14% in the first half of 2013, as the group posted solid results across the board.

The UK business’s International Financial Reporting Standards (IFRS) operating profit was £86m compared with £75.3m in the same period last year.

The combined ratio improved by 1.1 percentage points to 95.7% (H1 2012: 96.8%) and gross written premiums increased 3.2% to £996.3m (H1 2012: £965.1)

Allianz Insurance chief executive officer Jon Dye (pictured) said: “By any measure these are outstanding results that reflect the success of our long-term strategy. This centres around being an underwriting-led organisation with focused distribution and marketing strategies.”

For commercial, the combined ratio improved by 1.9 percentage points to 96.7%, while GWP increased by 1.6% to £534.4m (Q1 2012: £525.9m).

Commercial growth

Allianz achieved rate strength of 5.4% across all lines in its general commercial business, with the outstanding performer continuing to be commercial motor, where the company was achieving “good GWP growth” alongside “acceptable profit levels”.

Dye said it was making steady progress in property towards the desired level of financial performance but the casualty account – and the employers liability portfolio in particular – was more problematic. The company said it would continue to focus “considerable attention going forward to get the rate strength that reflects the risk exposures that we have on our book”.

Retail strengths

In retail, GWP grew by 5.16% to £461.9m (Q1 2012: £439.2m) but combined ratio remained the same at 94.8%.

The retail broker portfolio has achieved top-line growth year-on-year with GWP in the Animal Health (Petplan) up 10.4% over H1 2012 and the policy count reaching more than 920,000.

Dye said the household account was delivery strong growth, Allianz Your Cover was performing well and hitting its new business targets and the Corporate Partner business continued to make progress and attract new partners.

The legal protection business also continued to deliver an underwriting profit as it adapted to the post-Jackson reforms environment. It was expected to go on making a positive contribution as the growth opportunity in the area was substantial and the business was well-positioned.

Allianz was on course to deliver “an excellent set of results” in this financial year, Dye added.