Allianz Holdings illustrates ‘resilience’ in 2020 results

Allianz Holdings, which owns Allianz Insurance and LV= General Insurance, has posted a solid set of results for 2020, which its CEO hailed as illustrating the resilient nature of the business and the benefits of its diversity.

The company’s operating profit for 2020 reached £290 million, an increase of 196 percent compared with 2019. Its gross written premiums surged to reach £3.9 billion, a 97 percent increase on the same period a year earlier, largely driven by the integration of L&G General Insurance, which became part of LV= GI in January 2020.

The company’s combined ration for the period was 94.4 percent, an improvement on the 98.5 percent it posted in 2019. It also noted that COVID-related business interruption claims cost it £175 million, net of reinsurance.

Jon Dye, CEO, Allianz Holdings said: “The results we are announcing today demonstrate the resilience of our business and the benefits that can be gained through managing a large and diverse portfolio. The COVID-19 crisis has impacted different lines of business in different ways, for example the reduction in claims frequency in some books and the significant claims for Business Interruption. Other external factors impacting the 2020 figures included rising claims inflation and supply chain challenges, large losses, weather events and the general slowdown in economic activity.

“But our business is resilient. Our successful 2020 result was built on the ability of our colleagues to adapt to new working environments, the trust and support of our brokers, intermediaries, customers and suppliers and our flexibility to adapt our products, processes and protocols to the changing demands and dynamics of the market.”

In conclusion, Dye said: “The strengths that have delivered these robust results in 2020 will also serve us well as we look to the future. The UK is still in the midst of the Coronavirus crisis and is yet to work through the implications of the Brexit deal. But Allianz has a strong platform from which to deliver further profitable growth and we will maximise this potential by continuing to invest in the skills of our people and the products and services we provide to our customers, focusing on our digital and data capabilities.”

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