Allianz’s insurance coverage businesses in the UK
Revenue 2022 Revenue 2021 Variance
Allianz Holdings GBP3,966.1m GBP3797.7m 4.4%
Allianz Global Corporate & Specialty GBP1,113.5m GBP858.2m 29.7%
Allianz Trade GBP196.4m GBP186.2m 5.4%
Allianz Partners GBP337m GBP203.2m 65.8%
Total GBP5,612.8m GBP5,045.3m 11.2%
Highlights:
Allianz Global Corporate & Specialty UK continued its pattern of favorable advancement, increasing gross composed premiums (GWP) by almost 30%, with a strong efficiency throughout all lines driven by brand-new business.
Allianz Partners continued its effective development journey, increasing profits to GBP337m, capitalising on current brand-new business wins, favorable market healing and rate boosts throughout the travel market.
Euler Hermes rebranded to Allianz Trade, increasing awareness and more reinforcing its existence in the UK market. Trade credit insurance coverage carried out well, understanding good development driven by strong brand-new business generation, high consumer retention and greater volume.
Allianz Holdings continued to accomplish development throughout the business showing the strength and balance of its item portfolio.
Allianz Holdings
FY 2022 FY 2021 Variance
Gross Written Premium (GWP) GBP3,966.1m GBP3797.7m 4.4%
GWP Allianz Personal GBP2,635.4m GBP2,543.4m 3.6%
GWP Allianz Commercial GBP1330.2m GBP1,249.6m 6.4%
Operating Profit GBP132.3m GBP317.6m -58.3%
Combined Operating Ratio (COR) 99.2% 93.2% 6pp
Commenting on the figures, Colm Holmes, CEO Allianz Holdings, said:
‘Undoubtedly 2022 was a difficult year for the market and trading efficiency was affected by numerous big weather condition occasions and continuous inflationary pressures which have actually affected success. Despite these difficulties, we have actually still attained development throughout our business and these outcomes show that we have the scale and variety to stand up to even the most challenging of market conditions.’
Business Performance
During a year of financial unpredictability and tough trading conditions, Allianz Holdings provided development throughout the business with a 4.4% boost in profits to GBP3,966m (FY2021: 3,798m). Operating earnings fell by 58% to GBP132m (FY2021: GBP318m) and the Combined Operating Ratio (COR) degraded to 99.2% (FY2021: 93.2%), driven primarily by the effect of double-digit claims inflation, numerous substantial weather condition occasions and the business’s direct exposure to the motor market.
All parts of the business continued to be affected by the fast increase of inflation. Overall, Allianz skilled gross inflation of 9.5% -1, which led forecasts and prices presumptions at the start of 2022. The motor market in specific dealt with a mix of difficulties consisting of labour lacks, increasing repair work expenses and supply chain pressures, all of which continue to provide a problem.
The overall cost of the damage triggered by the severe weather condition occasions of 2022, consisting of the February storms, subsidence from among the most popular and driest summertimes and the December ‘Freeze occasion’ was GBP106m – web of reinsurance. Allianz’s sensible technique to reinsurance has actually benefitted the business and handled the general effect.
From a Personal Lines viewpoint, Allianz provided a boost in profits with GWP up 3.6% to GBP2,635m (FY2021: GBP2,543m), with a strong efficiency from Petplan which provided GWP of GBP657m (FY2021: GBP597m) and Flow providing development in line with expectations, showing the strength and variety of Allianz’s item portfolio. The business likewise saw strong retention following the execution of the FCA General Insurance Pricing Practices.
Meanwhile, Allianz Commercial attained development of 6.4% with GWP of GBP1,330m (FY2021: GBP1,250m). This was because of the Mid-Market business carrying out well and providing a 14.3% boost in profits with GWP of GBP653.7m. In addition, the Engineering Inspection business saw strong levels of development with earnings of GBP94m (FY2021: GBP88m).
2022 likewise saw Allianz continue to build on its strength in the Electric Vehicle (EV) market and preserve its position as one of the biggest insurance companies of electrical lorries in the UK. ElectriX, a brand-new service from LV= which assists drivers lease, charge and guarantee an electrical car, carried out well and is set for good development in 2023. Meanwhile, Allianz Commercial broadened on its EV offering for fleet consumers with the launch of a brand-new examination service for car battery chargers, which implies that all of its Engineer property surveyors are now trained to examine mode 3, electrical vehicle charging equipment situated in industrial and commercial places.
Customer and People
Throughout 2022, broker and consumer fulfillment stayed at remarkably high levels, with research study -2 validating Allianz is no.1 in the market for Commercial Mid-Market, Petplan, LV= and Engineering Inspections.
From an individuals viewpoint, Allianz Holdings was ranked 14th in the Inclusive Top 50 UK Employers List, in acknowledgment of its ongoing devotion to work environment variety and addition.
The business likewise strengthened its management group throughout 2022, with executive consultations consisting of Allianz Holdings primary running officer, Ashish Patel and primary compliance and business affairs officer, Alison Rayner, who signed up with the business in February 2023. Allianz Commercial likewise designated David Carey to the recently developed position of handling director, mid-market, reliable from April 2023.
ESG
As part of its dedication to form a more sustainable future, especially because of weather condition occasions ending up being more severe due to environment modification, Allianz Commercial continued the effective present of the Allianz Net Zero Accelerator program, helping brokers in determining and decreasing their carbon footprint and assisting them on their journey to net no.
Following the launch of Green Heart Standard to make the supply chains more sustainable, in 2022 more than 45,000 repair work were performed in carbon neutral bodyshops, corresponding to 66% of LV= consumer repair work. Allianz likewise extended its existing relationship with vehicle salvage professional Synetiq, as LV= participated in a brand-new contract which will see the insurance company’s bodyshop network increase the variety of green parts utilized to fix lorries.
From a humanitarian viewpoint, Allianz likewise supplied assistance to Ukraine, with staff member fundraising efforts in the UK adding to Allianz’s international contribution of more than 12 million Euros. Allianz likewise supplied extended home and motor insurance coverage cover under the UK Government’s Homes for Ukraine plan, one year’s complimentary car insurance coverage for Ukrainians coping with host households in the UK and complimentary family pet insurance coverage for Ukrainian refugees.
Outlook
Commenting on the outlook for the year, Colm Holmes concluded:
‘Our focus for the year ahead is to continue supporting our consumers and partners browse these challenging market conditions by providing market-leading items and exceptional service, underpinned by technical quality.
2023 will unquestionably provide more hard trading conditions and the marketplace will require to continue to handle inflationary pressures, increasing rates of interest and support consumers to reduce threats such as underinsurance. I’m positive that Allianz stays in a position of strength thanks to our varied and resistant portfolio of business.’
colm holmes
1. 9.5% describes general gross intensity inflation experienced by Allianz Holdings in 2022.
2. Allianz's benchmarking research study performed among brokers and consumers in 2022.
(C) 2023 Electronic News Publishing, source ENP Newswire
