ALLIANZ SE HY 2021 HY 2020 Variance
Gross Written PremiumGBP1863m GBP1981m -6%
Operating ProfitGBP169m GBP179m -6%
Combined Ratio 91.7% 92.7% -1.0pp
Financial highlights:
Success of joint venture with
GWP and Operating Profit impacted by Covid-19, competitive market conditions and the run-off of certain portfolios
Motor claims frequency is returning to pre-lockdown levels but premiums are at a five-year low
'I'm proud of what our business has delivered for the first six months of the year. Our half-year results show a very strong Combined Operating Ratio, underlining the solidity of
Four years after the announcement of the joint venture with
Our people have worked tirelessly this year and I'm incredibly proud of their hard work and commitment.'
In the first six months of the year,
HY 2021 HY 2020 Variance
Gross Written PremiumGBP913m GBP967m -5.6%
Operating ProfitGBP44m GBP72m -38.9%
Combined Ratio 96.7% 95.6% -1.2pp*
AZI Commercial COR 97.4% 110.1% -12.7pp
AZI Personal COR 94.1% 90.4% +3.7pp
*When the CORs are not rounded up, the difference between HY 2021 and HY 2020 is indeed 1.2 percentage points.
In the first six months of the year,
Within our commercial lines of business, the overall performance has improved. Although overall GWP is down slightly by 6% to
Our motor fleet products and services have responded well to our customers' changing needs during the last 18 months and this will remain a focus for the future, as society continues to change the way it travels due to evolution in vehicle technology as well as new ways of working.
Within the
On the claims side, the settlement of Covid-related Business Interruption claims has continued apace. Our claims teams have now issued a final or interim payment in more than 87% of accepted BI claims, compared to a market average of just 43%, a true demonstration of supporting our customers in their moment of need.
Our continuous investment in outstanding claims service also saw the launch of a new digital platform that helps motor repairers procure green parts from our salvage agent and, in a new upgrade for our Claims Hub, present position trackers now allow brokers to follow the progress of their claims live. This claims service is part of our dedication to broker service and has resulted in us being recognised by the Gracechurch Service Quality Marque for the fifth year in a row, which is a unique achievement.
Our ongoing commitment to the broker channel is further underpinned by our partnership ethos, as illustrated by many initiatives from the
In March, we celebrated the second anniversary of our charity partnership with Mind. Our colleagues have raised
HY 2021 HY2020 Variance
Gross Written PremiumGBP950m GBP1014m -6.3%
Operating ProfitGBP125m GBP107m +16.7%
Combined Ratio 87.0% 89.7% -2.7pp
'We've had a positive start to the year and I'm pleased with our overall performance. The strength of our products combined with the exceptional service we pride ourselves on delivering to our customers has resulted in us delivering good results. I'm also very proud of the steps we've taken to support communities through our partnerships with both the
The combination of supporting our customers and also having a positive influence on society continues to be our main priorities. There is a lot to look forward to in the second half of the year and the outlook for our business remains positive.'
In the first six months of the year,
Because of lockdown, Q1 2021 saw fewer people on the road resulting in a reduced level of claims frequency and a subsequent improvement in the profitability of our motor book. To reflect this, we continued to pass on savings to our customers both at new business and renewal. As restrictions relaxed in April, the number of cars on the road increased exponentially and as a result claims frequency has been rapidly heading towards pre-pandemic levels and this is expected to continue. Having said that, premiums are at their lowest level for five years according to the ABI and we expect the motor insurance market to remain incredibly competitive for the foreseeable future.
With people still spending an above average amount of time at home, claims levels were consistent with previous years but the benign weather created less fluctuations and a quieter claims period compared to the first half of last year which has benefitted the overall operating profit.
Our ability to continue offering good products and outstanding customer service saw us ranked the top insurer by the
In April, as part of our ongoing commitment to improving our social impact, we launched a new ethical standard for our branded bodyshop repair network - Green Heart Standard. The first of its kind in the car insurance industry, it will ensure suppliers within our network meet our social responsibility goals and enhance their green credentials.
Our investment in grassroots sport, via the
We have also partnered with
Outlook
As we look ahead to the future, the focus for commercial lines will be on ensuring we continue to support our customers through our extensive network of broker partners. Having a dedicated commercial business, with a
Meanwhile, within personal lines, the focus will primarily be on ensuring we're ready to successfully implement the
'As we look to the remainder of the year, our priorities continue to be on supporting our colleagues, our customers and our communities and I am tremendously impressed by the efforts of our people to deliver excellent service in what has been exceptional circumstances.
For our customers, brokers and intermediaries our objective is simple - to provide all of the support we can to help them navigate through the continuing uncertainty and to be successful in the new normal of a post-Covid world. This will drive our approach as we continue to build our flexible working model and our new product and service solutions.'
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