Allianz UK nine-month profit flat after 6% dip in Q3

Allianz’s UK non-life business made an operating profit of €142m (£113m) in the first nine months of 2012, identical to the profit it made in the same period last year.

According to Allianz group results released this morning, the flat UK non-life profit follows a 6% dip in third-quarter operating profit to €50m (9M 2011: €53m).

The group results also reveal that underwriting profitability has deteriorated slightly at Allianz UK. For the first nine months of 2012, the combined ratio was 96.8%, up one percentage point on the 95.8% reported in the same period last year.

This was caused by a 2.2 point increase in the loss ratio to 65.3% (9M 2011: 63.1%). Partially offsetting the increase was a 1.2 point reduction in the expense ratio to 31.5% (9M 2011: 32.7%).

The story was similar in the third quarter. Allianz UK’s combined ratio for this period was up two points to 96.9% (Q3 2011: 94.9%) thanks to a 5.3 point rise in the loss ratio to 66.7% (Q3: 61.4%). Again, the loss ratio rise was partly offset by a 3.3 point cut in the expense ratio to 30.2% (Q3 2011: 33.5%).

Group improvement

The UK non-life results contrast with those of the group, which improved. Group non-life operating profit for the first nine months of 2012 increased 11.5% to €3.5bn (9M 2011: €3.1bn). In the third quarter alone, operating profit was up 4.3% to €1.2bn (Q3 2011: €1.1bn).

The nine-month combined ratio improved 1.3 points to 96.6% and the third quarter combined ratio improved by the same amount to 96.3%.

Allianz chief financial officer Oliver Bäte said: “Our property/casualty insurance business has benefited from positive pricing effects and lower claims from natural catastrophes, so our focus will remain on securing profitable growth.”

Allianz UK will release separate results on Monday.