H1 2024 – Revenues increase 6.4% to £3.23bn for Allianz Group in UK

Allianz UK reports 55% increase in operating profit to £174.8m

Half year 2024 results released on the 8 August 2024 reveal that Allianz Group’s insurance businesses continued to grow in the UK, with their combined revenue up 6.4% on the previous year to £3.23bn.

The figures released also reveal a strong performance by Allianz UK, the insurer’s general insurance businesses in the UK. Key highlights in the first six months of the year include:

55% increase in operating profit to £174.8 million (HY23: £112.8 million)5.5% increase in Gross Written Premium to £2.21 billion (HY23: £2.095 billion)1.9pp improvement in combined operating ratio to 94.6% (HY23: 96.6%)

Commenting on the results, Colm Holmes, Chief Executive Officer, 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.

“For example, one year ago Allianz Commercial was introduced, creating a one-stop shop offering insurance solutions for mid-sized businesses, large enterprises and specialist risks. Premium in Allianz Commercial in the UK has risen by 5.9% since launch to £771 million (HY23: £728 million). Feedback from brokers and clients has been positive and encouraging, as they now experience a more joined-up mid and large corp business.

“GWP in the highly competitive personal lines market increased by 3.3% to £1.07 billion (HY23: £1.03 billion) as we continue to focus on delivering margin improvement. We remain mindful of the impact of claims inflation on the price of insurance for many. Claims inflation and repair costs remain stubbornly high, but the worst may be in the rear-view mirror. Our actions have reduced COR for Allianz Personal, bringing down costs and better supporting our customers. We are working hard on improving and simplifying the range of insurance options we offer. We are also investing in digital technologies and customer service experiences, which are among our greatest strengths.

“We have made great progress in further establishing the Allianz brand in the UK. We announced that we’re extending our long-standing partnership with England Rugby, with Twickenham becoming Allianz Stadium in September. We also launched the Allianz brand to retail consumers in motor and home, we are a proud sponsor of the Paris 2024 Olympic and Paralympic Games, and we are the official Insurance Partner of Team GB and ParalympicsGB.

“Our excellent Net Promoter Scores show the big part our people play in our success. Their hard work and determination every day to support our customers, clients and broker partners demonstrates Allianz at its best. We’ve just been recognised with Great Place to Work certification – accolades like this are a direct reflection of their hard work as well as the positive, inclusive and supportive environment they create every day. It’s an honour to lead such a group of extraordinary people.”

Financial Highlights

Segmental Highlights

Allianz Personal, covering motor and home insurance, has enjoyed improved profitability despite the continuing impact of claims inflation. Our focus on prioritising underwriting profit has delivered good results and strengthened our position. We are investing in delivering an exceptional customer experience and have developed strong customer loyalty, having made a great effort to communicate market inflation challenges to them. Having stabilised margins, we will look to focus on sustainable, profitable growth.

Allianz Commercial has shown robust top line growth of 5.9% and continued strong profit performance. In H1, we saw good year-on-year growth in terms of new business and benefited from disciplined rate taking and strong retention. The overall COR improved despite more large losses in H1 than expected. Commercial motor continues to be challenging but we are beginning to see signs of recovery.

Allianz Specialty, which focuses on animal health, continued to perform strongly with GWP growing 11.5% to £373 million and profitability also improving in pet insurance, despite falling pet sales post-Covid and high vet fee inflation. We are confident about continuing growth and strong performance in Allianz Specialty for the remainder of 2024.

Outlook

Commenting on the outlook for Allianz UK, Colm Holmes continued:

“I am incredibly proud of the progress our people have made in delivering such a strong performance in the first half of 2024. Our people have been outstanding and I cannot thank them enough for all they have achieved. We will build on these strong foundations in the second half of the year.

“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.

“Our results show that we are well placed to respond to the intense competition in the personal lines market. We will continue to invest in introducing the Allianz brand in the UK. Although that will change how consumers and brokers know us, it will not change our focus on delivering competitive pricing. We will continue to sharpen our focus on the customer journey while developing new products and enhancing our service to better serve their needs.

“Allianz Specialty is a great success and that won’t change. PetPlan is the UK’s market leading pet insurer, and has a highly trusted brand that, like all of our businesses, puts our customers first.

“To sum up, the potential of Allianz in the UK is enormous. We have made progress but 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.”