Allianz UK has reported an operating profit of £154 million for 2016, up by 324% from £36.3 million during the previous year.

 

According to Allianz UK CEO Jon Dye, the latest figure represents the company’s return to a strong “business as usual” performance, rising from its 2015 financial results impacted by adverse weather.

 

Combined ratio (COR) decreased to 96.4% from 102.6%, underlining the insurer’s “ongoing commitment to focus on writing for profit,” said Dye, who called it a “good result in competitive market conditions.”

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Gross written premium (GWP) is down over the previous year, but Allianz said this was an expected outcome from the decisions to leave the direct motor and home markets and to take corrective rate action on the personal motor book.

 

In personal lines, Allianz UK saw its GWP fall by 8.4% to £1.03 billion, though COR improved to 101.5%. In commercial lines, the insurer achieved a GWP growth of 1.7% to £1.1 billion, with COR down to 91.9%.

 

“Allianz has delivered a strong financial performance in 2016 in a year of considerable change for the organisation,” Dye said.

 

“I look forward to 2017 with considerable optimism because of the underlying strengths of the business as well as the capability of our people to meet the organisation’s challenging objectives,” he went on saying.

 

According to Dye, making “superior customer experience” is the top priority for Allianz UK this year. Other targets include investments in technology to become a “digital by default” organisation and systematically exploiting new opportunities for profitable growth.

 

Allianz UK also aims to create “superior margins, innovation and growth through the long-term investment in technical disciplines to achieve best in class performance,” Dye added.