Reserves mask weak profitability for Allianz in UK
Allianz insurance operations in the UK reported a 3% increase in profit of £94 million ($201 million) for the second quarter against the same period last year.
Gross written premium for the six months increased to £802 million ($1.7 billion) from £778 million ($1.66 billion) last year, while the combined ratio in commercial lines stands at 88.1%.
But Allianz CEO Andrew Torrance says the profit has been driven largely by prior year reserve releases. He says the underlying profitability of the business the company is writing is unsatisfactory.
“The credit crunch is, as predicted, starting to have an impact on customer behaviour and we are seeing the first signs of an increase in fraudulent claims,” he said.
Gross written premium for the six months increased to £802 million ($1.7 billion) from £778 million ($1.66 billion) last year, while the combined ratio in commercial lines stands at 88.1%.
But Allianz CEO Andrew Torrance says the profit has been driven largely by prior year reserve releases. He says the underlying profitability of the business the company is writing is unsatisfactory.
“The credit crunch is, as predicted, starting to have an impact on customer behaviour and we are seeing the first signs of an increase in fraudulent claims,” he said.