Allianz results show healthy profit

Allianz UK’s general insurance (GI) Q1 2012 results, published today, show a healthy profit and combined operating ratio (COR) despite the harshness of the market.

The results showed an operating profit of €42m (£34m), up 5% on the €40m it made in the same period last year. This is pretty good against the backdrop of a soft market, as is the tiny increase in COR from 97.1% to 97.3%.

The first quarter is generally challenging as winter weather claims take their toll, but most large insurers’ Q1 results have looked sturdy.

Ageas UK made a profit before tax of £22m in this period, almost six times the £3.8m profit it made in the first quarter of 2011.

AXA’s UK and Ireland non-life division brought in gross revenues of €996m (£799m) in Q1 2012, up 9% on the €916m it made in the same period last year.

Insurers ‘neglecting smaller brokers’

Large composite insurers may be posting good results at the moment, but they have come under fire for cutting service levels to small and medium-sized brokers.

Ataraxia chief executive Stuart Randall said that the large insurers had lavished attention on larger brokers, and could no longer give the smaller players the level of service they once did.

He said this cutback included dismantling branch networks and far fewer visits by underwriters to smaller brokers’ offices, while a market push towards e-trading did not make up the difference.

Smaller insurers such as NIG and Brit have made inroads in this area by opening new regional offices and empowering regional underwriters. Their larger composite cousin, AXA, has done the same thing, but it seems many of the larger insurers are still lacking in this area.