Allianz Group’s UK revenue up 2% year-on-year despite Covid-driven peaks and troughs

Insurer Allianz Group has reported a 2% growth in its UK business in 2021, achieving a total revenue of £5.4bn, according to its financial results for the full year ending 31 December 2021, published on 18 February 2022.

In the UK, Allianz Global Corporate and Specialty saw the biggest rise in total revenue – jumping up 22% to £1.1bn, compared to £932m in 2020. Driving this increase was its energy, construction and entertainment lines, as well as good market momentum and new business.

Allianz Holdings’ gross written premium (GWP), however, continued the downward trajectory reflected in its HY 2021 results – dropping 3.2% by the end of 2021 to £3.8bn, compared to £3.9bn in 2020.

In personal lines, the drop in GWP amounted to 1.6% over the course of 2021, equating to £2.5bn. This compares to GWP of £2.6bn for 2020. The business’ combined operating ratio (COR) reflected a positive 91.3%, however.

For Allianz’s commercial lines division, GWP dropped 2.7% to £1.25bn in 2021 – down from £1.28bn in 2020. COR for this part of the business, meanwhile, reached 96.1%.

Allianz attributed these decreases in GWP to the continuing impact of the Covid-19 pandemic and the soft motor market.

Allianz Holdings’ operating profit, despite the GWP drops, increased to £318m – up 9.4% from £290m last year.

Furthermore, its COR improved by 1.2 percentage points to 93.2%, compared to 94.4% in 2020.

The insurer also made an interim or final payment on 96% of accepted business interruption claims.

Allianz Holdings chief executive Colm Holmes said: “The figures we are releasing today show that Allianz continues to deliver strong results, even in the most difficult of market conditions.

“We know that 2021 was another tough year for people and businesses, as the pandemic continued to impact every aspect of our day-to-day life, but we have been there to support our customers when they needed us the most.

“Our results show the importance of having a balanced portfolio of business across personal and commercial lines, through direct and intermediated channels, as well as having the technical expertise to steer our way through turbulent market conditions.”

Portfolio resilience

Allianz Partners, meanwhile, increased its revenue to £203m in 2021 – up 16.5% from the £174m recorded in 2020.

Allianz’s global trade credit insurer Euler Hermes also saw a 2% rise in revenue – equating to £186m in 2021.

Holmes added: “Allianz is in a great position to build its position in the UK, based on the strong platform of a diverse and resilient portfolio of profitable business.

“To maximise our potential, we must continue to work closely with our brokers and other business partners and listen to feedback from our personal customers.

“We need to understand their requirements and deliver market-leading products and service.

“Our growth will be intelligent and sustainable, offering smart but simple to use digital solutions to support our customers in this ever-changing world.”

Allianz Group began an eight-year worldwide partnership with the Olympic and Paralympic movements in January 2021.

Allianz SE chief executive Oliver Bäte clarified in a press conference call this morning (18 February 2022) that Allianz does not sponsor the Olympic games in China or give any money to the Chinese government for holding the events - rather, it sponsors the athletes that are participating, which is “totally different”.