Source: ProfessionalBroking

Date: 6th December 2006

Allianz shrugs off personal decline

Allianz made a recovery in the third quarter to profits ahead of schedule for the year. The result saw a 22% increase in profit to £71m over the same quarter in 2005.

However, chief executive Andrew Torrence saw AC's personal lines premium income decline from £215.3m gross written premium in 2005 to £190.2m GWP in the first nine months of 2006, while its personal combined operating ratio improved by 0.7% to 98.3%.

The premium fall did not affect the insurer's accumulative third quarter profit before tax, which increased to £172.4m compared with £166.9m last year. Overall, its COR improved to 93.1% (2005: 93.7%), while gross written premium decreased to £1.24bn (2005: £1.26bn) largely as a result of the fall in personal lines.

In commercial lines the insurer saw an increase in GWP, rising to £793m from £775.8m in 2005. Combined ratio was bettered slightly by 0.3% to 91.1% (2005: 91.4%).

GWP in its specialty division dropped to £257.2m.

Torrence added that its two recent acquisitions, Home and Legacy and Premierline, had a negligible effect on its results, stating that investment in them will show itself in the long-term.