Insurance firm Allianz UK has reported a 35% slump in operating profit to £110.6m for the 2019 financial year.
Profits were impacted by a number of factors including increased fire, theft and escape of water losses in its commercial property account, as well as some one-off impacts including the Ogden discount rate change and PPI redress payments relating to historic business written.
However, the firm said this was compensated at a net income level, with results in line with 2018 due to additional investment gains made on the successful acquisition of LV= GI.
Gross Written Premium increased by 9.3% during the period, driven by rate increases and volume growth supported by the “positive impact” of the transferred LV= commercial business.
CEO Jon Dye said: “I look back on 2019 with great pride on behalf of everyone at Allianz Insurance. Whilst our operating profit fell short of our expectations, we achieved so much in positioning our business for a successful future.
“The completion of the transfers of business between Allianz and LV=, the establishment of shared services to support these businesses and the completion of the LV= and L&G deals have created a tremendously strong platform from which we can grow profitably.”
He added: “This success has not only been down to both the hard work and commitment of our colleagues at Allianz but also the support of our broker partners. 2019 was a year of unprecedented change, not just in our own business but in the markets in which we operate, in the economy and in society.
“To maintain our NPS and employee engagement scores as well as our claims service ratings at such high levels against this backdrop is a considerable achievement.”