Allianz Cornhill's pre-tax profit has fallen slightly from £210.6m in 2004 to £206.4m in 2005.
The insurer's combined ratio was little changed, from 94% to 94.9%. Gross business premium income fell from £1,767.9m to £1,665.5m.
Chief executive, Andrew Torrance, has hailed the results as “excellent, in the face of a challenging and difficult insurance market. Our financial planning for the year reflected these anticipated market conditions and I am therefore delighted with our 20% ahead of plan profit performance which is only 2% behind last year's record level. Our overall combined ratio was also better than plan which confirms the skill and commercial dexterity my colleagues have demonstrated in successfully managing the insurance cycle.”
While Allianz's combined ratio for commercial lines and specialty business slightly improved, the personal lines combined ratio deteriorated from 95.9% to 101.5%.
Commenting on personal lines, Torrance said: “We held steadfast by our conviction to write business at rates which we can reasonably expect to generate an acceptable level of profit. This underwriting stance, coupled with the continuing soft market conditions in the motor market as well as the more competitive conditions than anticipated for household business, resulted in a weaker than hoped for top line performance.”
