Allianz Holdings has revealed it has experienced a 10.6% drop in GWP to £ £917m during the first quarter of the year.
Allianz said the reduction in its commercial lines GWP can be attributed to the economic impacts on its customers filtering through to its revenue. However, it added that actions which have been put in place to “address specific challenges” in various lines of business have been having a “positive impact” on performance and the business is “well-positioned to build on its strong base”.
Overall Personal lines GWP were also down due to the planned withdrawal from a Corporate Partner arrangement. Despite this, it added Petplan continues to “perform well with significant growth”, benefiting from successful marketing activities and digital developments as well as significant growth in the puppy and kitten populations during lockdown.
Allianz added it continues to manage Covid-19 Business Interruption claims with payments made on well over 80% of accepted claims, comparing favourably with the market in the Financial Conduct Authority (FCA) published data.
At LV= General Insurance, GWP in the first quarter dropped by almost 9% compared to Q1 2020, to £466m. It said the reduction was influenced by a number of factors, most notably the ‘current particularly competitive motor insurance market”.
The first quarter also saw a reduction in travel insurance premiums due to ongoing restrictions caused by the pandemic, while reduced road use led to a decrease in premiums for breakdown business. As a result of these difficult trading conditions, LV said it has been careful “not to pursue revenue at all costs” as its focus remains on delivering “sustainable profitable growth over the longer term”.
Jon Dye, CEO, Allianz Holdings, said: “The first quarter of 2021 saw a dip of 10.6% in GWP for Allianz Holdings against the backdrop of reduced economic activity and challenging trading conditions in both the commercial and personal lines markets.
“The pandemic and lockdown continue to impact all lines of business in different ways and Allianz Insurance and LV= GI are extremely well positioned to navigate the ongoing uncertainty. We will continue to provide all the support we can to customers, brokers and colleagues as restrictions are lifted and the country cautiously reopens for business.”
He added: “Our approach remains to deliver long-term profitable growth and we will achieve this through providing excellent customer service and building strong relationships with our partners. Our business is well-balanced and has proven its resilience in exceptional circumstances underpinned by the stability of our team and consistency of our approach to market.”