Allianz UK posts 100.4 combined ratio
Allianz UK fell into an underwriting loss in 2017.
The business posted a 100.4% combined ratio, deteriorating 4.4% from 2016. Operating profit also fell 53.6% to €72m.
The group results revealed the UK arm had large losses in the third quarter and also a €55m hit from Ogden, the government change leading to higher payouts for seriously injured people.
The group said the LV= deal means it is now the third largest general insurer in the UK.
Group wide results
The group delivered good news for shareholders, being able to shrug off the large catastrophe losses and increase its dividend for 2017 by 5 percent to €8 a share.
Despite one of the biggest catastrophe seasons in years, group property and casualty combined ratio only marginally increased 0.9% to 95.2%.
Hurricanes Harvey, Irma and Maria, in addition to the European storms, hit group operating profit in the fourth quarter by 8 percent to €2.8bn.
Group operating profit was up 0.4 per cent to €11.1bn for the full year.
“The group met its performance targets, maintained an extraordinary level of capital strength and returned 3 billion euros to shareholders through share buybacks in 2017,” said Allianz chief executive Oliver Baete.
“Allianz also made important strategic strides.”