Allianz UK reports discounted COR of 94.6% for 2024’s H1

Allianz UK, which consists of the UK-based general insurance businesses within Munich-headquartered insurer Allianz Group, has reported a 1.9 percentage point improvement in its discounted combined operating ratio (COR) for the first half of 2024 – this now sits at 94.6% compared to 2023’s half-year result of 96.6%.

This figure was among the details published in the insurer’s 2024 half-year trading update, released on 8 August 2024.

Allianz UK additionally confirmed a 55% uptick in its operating profit over the first six months of 2024, reaching £174.8m compared to 2023’s £112.8m result.

Its gross written premium (GWP) also improved by 5.5% over the same time period, amounting to £2.21bn versus £2bn for the first half of 2023.

Combined revenue across Allianz Group’s UK businesses grew 6.4% year-on-year, to now total £3.23bn.

Colm Holmes, chief executive at Allianz Holdings, said: “The first half of this year is an important chapter in the story of Allianz in the UK.

“I am pleased with the progress we made. The actions we took delivered improvements in premium, combined operating ratio and profit. These offer clear evidence that our strategy of focused expansion is working. Indeed, we are confident of carrying this momentum through to the end of the year and beyond.

“Feedback from customers, partners and brokers tells us our momentum is catching their attention – they like where we’re heading and how we’re getting there.”

Commercial versus personal lines

Looking at how GWP is split across Allianz UK’s divisions, the insurer recorded a 5.9% GWP improvement in its commercial lines arm, with a £770.9m GWP total for H1 2024 compared to £728.1m for 2023’s first half.

Despite commercial motor continuing to be a “challenging” line of business, Holmes noted that Allianz UK’s commercial business showed “robust top line growth and continued strong profit performance” in the first half of this year, benefiting from “disciplined rate taking and strong retention”.

He continued: “Allianz Commercial has started to deliver to its potential as a one-stop-shop for all commercial customer needs.

“Market conditions remain tough, but we look forward to this part of the business evolving further and getting closer to client needs.”

As for personal lines, this area of Allianz UK grew 3.3% in terms of GWP between H1 2023 and H1 2024, moving from £1,032m to £1,066m.

Covering home and motor insurances, Holmes explained that Allianz UK’s personal lines division had “enjoyed improved profitability – despite the continuing impact of claims inflation”.

He said: “Our results show that we are well placed to respond to the intense competition in the personal lines market.”

In Allianz Specialty, which includes pet insurance offering PetPlan, GWP rose 11.5% year-on-year, from £335m for 2023’s first half to £373.3m this year.

Holmes is “confident” about further growth in this line.

Commenting on Allianz UK’s results as a whole, Holmes concluded: “The potential of Allianz in the UK is enormous.

“We have made progress, but [we] remain closer to the start of our journey to untap this potential than the end. Much more is yet to come. We are excited about the opportunities that lie ahead.”