ALLIANZ UK REPORTS 52% INCREASE IN OPERATING PROFIT TO £367.8 MILLION

Full year results for Allianz Group released today reveal that the organisation continued its focussed expansion in the UK insurance market during 2024, achieving a combined total revenue of £7.07 billion across Allianz UK, Allianz Commercial, Allianz Trade and Allianz Partners.

The figures demonstrate a confident performance by Allianz UK, the insurer’s general insurance businesses in the UK.

Key highlights for Allianz UK in 2024 include:

52% increase in operating profit to £367.8 million (FY23: £241.6 million)
5.5% increase on total business volume to £4,658.7 million (FY23: £4,416.3 million)
1.9pp improvement in combined operating ratio to 95.0% (FY23: 96.9%)
Strong performance in Personal, Commercial and Speciality businesses
The launch of the Allianz brand through new personal home and motor products as well as partnership activations such as the Allianz Stadium
Allianz UK was awarded the Gracechurch Quality Service Marque for the ninth year in a row and maintained NPS loyalty leadership across its Personal, Commercial and Specialty businesses.

Outlook:

“I’m very pleased when I look back at 2024, as it’s the year we started to realise some of our potential. A 52% increase in operating profit to £368 million reflects an exceptionally strong year and signals our growing presence in the UK insurance market.

“Our plan to deliberately focus our effort on disciplined, profitable growth is working. Through improved technical expertise and pricing capabilities we traded successfully in challenging markets; we invested in talent, we simplified our range of insurance products, expanded our brand portfolio, distribution channels and range of partnerships, and we invested in improvements to customer service experiences. This approach has been resoundingly recognised across all our business lines with Allianz UK maintaining NPS loyalty leadership across Personal, Commercial and Specialty.

“Allianz Specialty, specifically Petplan, maintained its market leadership in the UK and remains a highly trusted brand with vets and customers. It continued to deliver another exceptional performance in 2024 in both premium growth and profitability. Commercial lines continued to deliver strong underlying profitable growth, and we have continued to deliver on the turnaround of our Personal lines business. It has made strong inroads into the consumer market with the launch of the Allianz brand through new personal home and motor products, as well as partnership activations such as the Allianz Stadium.

“Our business transformation programme aimed at re-platforming our Commercial business, and our investment in simplification and digital trading, is beginning to pay dividends. However, while I’m pleased with our results the job is by no means finished and there’s much more to come. We will continue with our sizeable investment in data and technology to support our people and customers, and deliver continued strong profitable growth across our business.”

Colm Holmes, Chief Executive Officer, Allianz UK

FINANCIAL HIGHLIGHTS:

Allianz’s insurance businesses in the UK

Total Business
Volume

FY2024 (£m)
FY2023 (£m)
Variance

Allianz UK
4,658.7
4,416.3
5.5%

Allianz Commercial (formerly AGCS)|
Allianz Partners|Allianz Trade
2,412.9
2,199.3
9.7%

Total
7,071.6
6,615.6
6.9%

Allianz UK (Holdings)
FY2024 (£m)
FY2023 (£m)
Variance

Operating profit
367.8
241.6
52.0%

Total Business Volume
4,658.7
4,416.3
5.5%

Combined Operating Ratio
95.0%
96.9%
1.9pp

SEGMENTAL HIGHLIGHTS:

Allianz UK Personal

Allianz Personal continued to deliver on the turnaround of the motor and home business delivering an operating profit of £114.3m, a 4% increase in TBV to £2,247.5m and a 7.3pp improvement in COR. These results were achieved despite a continuing backdrop of higher claims costs and softening market conditions.
The focus on disciplined pricing and investment in customer service has strengthened our position and enhanced our strong customer loyalty.

We will continue to focus on, and invest in, our data and pricing capabilities to drive technical excellence and create a market leading data and technical underwriting team.
The changing market has impacted certain lines, and we will remain disciplined in underwriting for margin. Our diverse portfolio, however, means that Allianz Commercial remains in a position to drive profitable growth in 2025.

Allianz UK Commercial

Allianz Commercial has enjoyed a successful year with operating profit of £146.5m, and COR of 95.4%. Performance was underpinned by solid retention rates and underwriting discipline. The Engineering Inspection business has continued to exceed its targets and 2024 saw improved profitability and double-digit growth in both direct and broker channels achieving £115m fee income.

Allianz UK Specialty (Pet)

Allianz Specialty delivered another excellent performance in 2024 across all metrics. Operating profit increased to £102.7m, we delivered a 10% increase in TBV to £812.8m and COR reduced from 91.5% to 86.9%. The pet market remains competitive and challenging but inflation, including vet fee inflation, has been stabilising. These achievements are due to a sharp focus on proposition development and technical excellence, and we are well positioned to maintain Petplan’s market leadership position into 2025 and beyond.

Colm Holmes continued:

“It’s clear we delivered a strong 2024 result. Our numbers evidence that our strategy, and the actions we have taken in recent years to form and establish Allianz UK, is working. I’d like to thank my colleagues for their hard work supporting our customers, clients, and broker partners. Their efforts underpin our success; they demonstrate Allianz at its best each and every day.

“As we enter 2025, we are lifting our ambitions once again. We have the right strategy, a strong management team, and are well placed to adapt to changing market conditions and take advantage of the opportunities ahead. Our momentum is building, our focus on disciplined underwriting and pricing has laid solid foundations for further growth, as has our investment in transforming our systems and capabilities. This confidence in our business is reflected in feedback from our broker partners, clients and customers including maintaining loyalty leadership NPS scores for all business areas.

“There will be challenges of course, but we are ready to grow and ready to leverage all of Allianz’s unique strengths and capabilities, including working with our large-Corp colleagues to better serve the whole Commercial lines market. We will continue to deliver the very best service and support for customers across all our business lines and make further steps towards our ambition to be the most trusted insurance partner to customers, clients, and brokers.”

[ENDS]

For further information please contact: Amy Yorston | amy.yorston@allianz.co.uk

Notes to editors:

Definition: Total Business Volume is the premium received by the business for both insurance and non-insurance operations.