Allianz Holdings sees record growth in 2023 despite ‘challenging’ inflationary pressures

Allianz grew its gross written premium (GWP) income by 9% in the UK in 2023 despite inflation making the year “challenging”.

In a trading update, the insurer revealed that its businesses across the UK secured a GWP of £6.56bn last year, up from £6.02bn in 2022.

This was driven by improved growth from Allianz Holdings – figures show its revenue grew 7.4% year-on-year to £4.25bn, which is the first time the arm has surpassed the £4bn mark.

Its combined operating ratio also improved, with it lowering from 98.4% in 2022 to 96.9% in 2023.

The improvement in the division was thanks to growth across specialty and commercial lines, both of which saw GWP increases of over 6% year-on-year.

Personal lines GWP also jumped year-on-year, with it increasing from £1.97bn in 2022 to £2.1bn in 2023.

The insurer said that personal lines performance was disappointing in the first half of the year, but finished the year with “very encouraging momentum”.

“Inflationary pressures and the resulting cost of living crisis made 2023 another challenging year,” Colm Holmes, chief executive of Allianz Holdings, said.

“We have more to do, but performing so well in tough conditions demonstrates our resilience and stability.”

Other businesses

Meanwhile, Allianz Commercial grew its revenue 9.8% from £1.52bn to £1.67bn. The insurer said this was due to “strong performance driven by new business and strong retention”.

Allianz Trade in the UK also delivered year-on-year revenue growth across all its main lines of business and income streams.

Allianz said client retention levels remained strong throughout the year and new customer acquisition accelerated in the second half of 2023.

And Allianz Partners grew its revenue to £409.5m, driven by consumer demand across its travel and mobility lines of business, as well as the launch of a number of new strategic partnerships.

Outlook

Looking to 2024, Holmes predicted that the external environment around personal lines was “expected to be more stable” and felt the insurer’s approach to rate would deliver “much improved results in line with our ambitions and targeted margins across our portfolio”.

And on the commercial side, he said there was “no doubt” that it will continue to accelerate, with Allianz having a particular focus on the upper mid-market.

“We are open for business and are always challenging ourselves to find the very best ways to support our brokers and clients,” Holmes said.

“Specialty, including our Petplan business, is a UK success story and, like commercial, it continues to play an important part in our business and in the lives of our customers.”

“For us, I view 2024 as the next chapter in our growth story.”