Profits up 17.5% and the partnership with LV= is making great progress

Posted on: 03 August 2018

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Allianz UK Financial Results HY 2018 HY 2017
Gross Written Premium
£1,066.4m* £1,063.8m*
Operating Profit £87.8m £74.7m
Combined Operating Ratio
94.8% 96.5%

Commercial Lines

Gross Written Premium
£589.0m* £561.3m*
Combined Operating Ratio
94.3% 92.8%

Personal Lines

Gross Written Premium
£477.5m £502.4m
Combined Operating Ratio
96.9% 99.0%
*The GWP figures for HY 2018 and HY 2017 exclude income from Engineering Inspection and Special Services. The GWP figures reported at the half year point in 2017 were inclusive of this income. See Notes for the Media below.

Download half year results 2018 infographic [PDF]

Chief Executive Officer, Jon Dye said:

Profits are up 17.5% over 2017 in challenging market conditions and the Combined Operating Ratio is 1.7% better than this time last year. These are very pleasing results. Revenues are broadly flat, which reflects the start of the transfer of Allianz’s personal home and motor business to LV=.
"I am pleased with the way we have maintained our trading focus while at the same time committing considerable resources to the joint venture with LV=. To put this into perspective, communications about the new arrangements have gone out to 1,600 brokers, new relationships have been created between 167 brokers and Allianz and the transfer of personal home and motor business to LV= began on schedule. Some commercial schemes business has already come over from LV= and we will start to issue new commercial lines business invitations from 6 August for former LV= business with effective dates of 20 September onwards. By the end of the transfer process, almost 600,000 policy details will have been exchanged between ourselves and LV=.
"Putting all this together means it has been a great start to the year for the business."


GWP has increased by 4.9% and the COR stands at a pleasing 94.3% which represents a very good performance in a highly competitive market.  

The commercial book has grown organically which reflects the quality and breadth of the products available to brokers. We believe brokers appreciate that Allianz is a trusted safe haven for their customers’ insurance needs and are placing more business with us during these uncertain political and economic times.

The transfer of the commercial lines portfolio from LV= is an exciting prospect. It will increase the size of the book and provide the opportunity to broaden our underwriting footprint and knowledge. For example, new Truck and Taxi products will be launched later this year and a presence in the London Market through a new specialist London motor team offers the possibility of learning from a previously unexplored channel. And we have expanded our distribution potential through the new broker friends mentioned earlier.     

The Engineering business is also performing strongly with top line growth at nearly 18.0% compared to the same point in 2017 and the COR is in a particularly healthy position.  Strong progress has been made in Construction following the launch of a new proposition supported by expert teams, leading to a 15% increase in new business volumes.

More broadly, after the Ogden rate was reduced in February 2017 we had a number of challenging but constructive conversations with brokers about how to cover the rising cost of personal injury claims. The progress of the Civil Liability Bill is encouraging but as the recent government announcement on the delay in implementing the Whiplash reforms element shows, it’s not over until it’s over. Irrespective of the progress on personal injury reform, the overall claims environment is unfavourable for insurers and we do not see that changing markedly anytime soon.


As we have prepared for and begun to execute the business transfer as part of the joint venture, the Personal Lines GWP has reduced by 5.0% and this trend will continue. The COR is 2.1% 

lower than at the same point in 2017 which is a positive outcome.

Petplan continues to deliver a good set of growth and profit numbers. The customer base has grown by 3.0% over the last 12 months and the business currently insures 1.3m pets which shows this market leader continues to offer great appeal to the UK’s pet owners.

Jon Dye concluded:

I am pleased with the results the business has achieved during the first half of the year. The profit result is strong and good progress is being made on the transfer of business with LV=. The positive feedback from brokers to my colleagues at the branches and at events like the BIBA conference show the challenges of the joint venture are being handled with considerable professionalism by our two organisations.
"Allianz’s recent success at the British Insurance Awards in winning the Commercial Insurer of the Year title; with LV= picking up the Brand Management Award, is a good example of how the strengths of the two organisations complement one another.
"These are exciting times for the business and our journey to becoming a top three general insurer by 2020 is making strong progress."