Allianz releases Q2 results

by Richard Kilner

Story link: Allianz releases Q2 results

Allianz Insurance has released its results for the second quarter of this year which shows profits and premiums rising.

The firm recorded pre-tax profits of £94m, compared to £91.1m from the equivalent period last year.

Gross written premiums also rose on a similar comparison, hitting £802m, up 3.1% from £777.7m in 2007.

Commercial Lines GWP increased by 4.5% from the Q2 2007 figures, and the end of quarter combined ratio was 88.1%.

Retail business GWP saw more modest growth, but nevertheless increased by 1%.

Andrew Torrance, chief executive officer, has described the results as satisfactory, but largely driven by prior year releases.

He went on to explain that the underlying profitability of the business the firm was writing was simply unsatisfactory.

Allianz recorded positive results in every commercial line, which Torrance is pleased with, but the pace of improvement is slower than he would like.

Torrance also stated that rising claims costs and soft market conditions are causing an inadequate return from the motor portfolio.

Lastly, he stated that the credit crunch was beginning to alter customer behaviour, leading to an increase in the number of fraudulent claims.

As a result, underwriting and claims staff were being given additional training to help combat the fraudsters.