Allianz delivers robust results for 2020

Authored by Allianz

Allianz Holdings plc, the holding company which owns Allianz Insurance and LV= General Insurance (LV= GI) announces its results for the full year ended 31 December 2020.

Allianz Holdings:

*Includes Allianz Insurance, LV= General Insurance and L&G General Insurance

**Allianz Insurance only

Financial highlights:

  • Expanded Allianz business, incorporating LV= General Insurance and L&G General Insurance

– Almost doubles GWP

– Delivers £192m (196%) increase in Operating Profit

– Shows 4 percentage point improvement in COR.

  • Total impact of COVID-19 Business Interruption BI claims in 2020 was £175m, net of reinsurance
  • Payments have been made on 1800 COVID-19 Business Interruption (BI) claims to date, totalling £40m and including 78% of valid SME claims.

Jon Dye, CEO, Allianz Holdings said: “The results we are announcing today demonstrate the resilience of our business and the benefits that can be gained through managing a large and diverse portfolio. The COVID-19 crisis has impacted different lines of business in different ways, for example the reduction in claims frequency in some books and the significant claims for Business Interruption. Other external factors impacting the 2020 figures included rising claims inflation and supply chain challenges, large losses, weather events and the general slowdown in economic activity.

“But our business is resilient. Our successful 2020 result was built on the ability of our colleagues to adapt to new working environments, the trust and support of our brokers, intermediaries, customers and suppliers and our flexibility to adapt our products, processes and protocols to the changing demands and dynamics of the market.”

Allianz Insurance:

Allianz Insurance experienced an overall small decline in premium income (5.6%) compared to 2019. In the Commercial book this was due to the impact of COVID-19 on economic activity, with Motor and Casualty lines seeing the impact of increased mid-term adjustments, return premiums, reduced exposures and lower new business levels. In Personal Lines, the exit of a large Corporate Partner arrangement also impacted the top line figure.

Total Operating Profit increased by 10% (£10m) compared to FY 2019. COVID-19 business interruption claims impacted the 2020 result by £175m, net of reinsurance. These losses have been offset by the claims effects of the economic slowdown, in particular in Commercial Motor and Pet.

Allianz adopted a responsible and market-leading approach to dealing with BI claims, settling quickly and fairly from the outset. As at the end of January, payments had already been made on 75% of all valid claims. This approach has received extremely positive feedback from brokers.

Allianz has retained its keen focus on building stronger relationships in the market. Maintaining an ongoing dialogue with brokers has been crucial and broker engagements with Allianz increased significantly in 2020 over the previous year. Supporting customers has also been a top priority. Business risks are changing and Allianz has been proactive and flexible to enable customers to change or adjust business descriptions, sums insured, policy conditions and exposure, as well as allowing changes to payment terms.

In addition to the £10.1m Allianz donation to the COVID-19 Support Fund and the £700,000 payment to pet charities to cover their lost revenue, Allianz also donated £300,000 to the Help Musicians UK Coronavirus Support Fund, to support musicians who are struggling due to the pandemic. Allianz has continued to support its corporate charity, Mind, maintaining its fundraising momentum through virtual events and £325,000 in 2020. The launch of the Allianz Community Fund as part of its emergency Coronavirus funding saw donations to local charities, and the company doubled the volunteering allowance for colleagues, enabling everybody to spend 20 hours supporting their local community.

In Commercial lines, and particularly in the Property and Packages accounts, rising claims inflation, weather events and the pattern of large losses combined to put pressure on the book, along with issues due to lack of rate strength. Despite this, 2020 saw the business make good progress to improve underlying profitability, driving premium increases in excess of claims inflation while addressing areas of volatility to deliver improved portfolio performance in a number of areas, especially Property lines.

The Engineering, Construction & Power insurance business had a successful year in 2020, with growth in premium and profit. Special mention should also be made of the Engineering Inspection business where Allianz’s Engineer Surveyors have maintained extraordinarily high service levels in the face of considerable challenges in accessing plant and equipment. This contributed to Allianz EC&P earning NPS loyalty leadership for the 13th consecutive year.

Personal Lines performed well in 2020. The primary driver was Petplan which has now become a £500m business and saw profit ahead of 2019. This result was supported by a successful programme to drive more sales online. Allianz Legal Protection and the Corporate Partner business have both undergone significant restructuring and both returned to profit in 2020. Allianz Musical Insurance saw a decline in premium income as a result of the downturn in the live music industry but remains robustly profitable.

Q4 2020 saw the launch of Allianz’s sponsorship of England Rugby. As well as partnering with the men’s and women’s England rugby teams and the Allianz Premier 15s, the partnership shows Allianz’s support for women’s sport as title partner of Inner Warrior, the grassroots programme to encourage girls and women into sport.

LV= General Insurance:

*Includes L&G General Insurance which became part of LV= GI in January 2020.

**Numbers reported for 2019 have been restated to be shown on a consistent Allianz accounting basis.

Steve Treloar, CEO of LV= General Insurance, said: “2020 was an extraordinary year. The impact COVID-19 had on everyone’s lives was unprecedented and from a business perspective it certainly wasn’t without its difficulties. In a short space of time, we were faced with the challenge of getting all 4,000 of our people safely working from home, which I’m pleased to say we successfully managed. Throughout the year, we also focused our efforts on ensuring we supported our customers, our partners as well as our local communities. I’m proud of what our people achieved and our business remains in a robust position.”

LV= GI enjoyed a strong year from a trading perspective. We saw a 30% growth in Gross Written Premiums (GWP) to just over £2bn, mainly due to the acquisition of L&G General Insurance, (FY 2019: £1571m) and Operating Profit at £183m (FY 2019: £81m), with the latter being achieved through a combination of being more efficient in the way we manage our business as well as an improved performance in our motor business. Our Combined Ratio (COR) reached 91.3% (FY 2019: 96.9%). In LV= Broker, GWP increased by 16%, primarily due to significant growth across a number of lines including standard motor, specialist motor and home, and growth in LV= Retail remained broadly flat, reflecting our more cautious approach to pricing in a soft market.

In the early months of the pandemic, with fewer people on the road we saw a reduced level of claims frequency which has resulted in an improved profitability of our motor book; although we expect the performance of this line of our business to return to more normal levels throughout 2021. In Home, claims frequency remained fairly static but as a result of people being at home more we did observe a number of new trends in the year including: 225% increase in fire claims, 40% increase in the proportion of blockages and 21% increase in the proportion of bicycle thefts from gardens.

Throughout the pandemic, we focused much of our efforts on helping our customers across all channels and introduced a series of measures, such as offering refunds to those struggling financially, waiving claim excesses, not charging administration or cancellation fees, lowering our motor rates and offering enhanced cover to NHS and key workers. We also increased the amount we paid to certain suppliers and didn’t furlough any of our employees. Our commitment to helping people and communities recover and rebuild from COVID-19 also extended to grassroots sport as we announced the #Funds4Runs initiative with the England and Wales Cricket Board (ECB). The £1m investment, jointly funded by the ECB and LV= GI, will focus on supporting key areas where access to cricket has been limited, particularly children from deprived backgrounds, diverse communities, disability groups and women and girls’ programmes.

Operationally, the full integration of the L&G General Insurance business into LV= GI, which was announced in the summer, continued to progress well and we’ve now started to migrate business across to LV= Broker. Our approach to customer service also saw us achieve our highest ever position in the UK Customer Satisfaction Index in July (joint eighth), building on consecutive top 10 places since January 2019, and LV= Broker was awarded the prestigious ServiceMark Accreditation from the Institute of Customer ServiceWe were also named a Which? Most Recommended Provider for both Home and Motor.

As we look forward, much of our focus will be on working with the Financial Conduct Authority to introduce the changes from the General Insurance Market Study, as well as managing the uncertainty of claims inflation which is inherently linked to the future strength of the UK economy.

In conclusion, Jon Dye said: “The strengths that have delivered these robust results in 2020 will also serve us well as we look to the future. The UK is still in the midst of the Coronavirus crisis and is yet to work through the implications of the Brexit deal. But Allianz has a strong platform from which to deliver further profitable growth and we will maximise this potential by continuing to invest in the skills of our people and the products and services we provide to our customers, focusing on our digital and data capabilities.”

Deep Freeze Causes Problems Across the South; Broken Water Mains Plague Cities

Workers in Tennessee raced Sunday to fix water mains that failed in freezing temperatures, and COVID-19 vaccine shipments resumed as the South carried on with efforts to recover from the winter weather that paralyzed parts of the nation.

In Texas, where millions of people endured days of bitter cold without power, officials urged President Joe Biden to visit as soon as possible.

Ten inches of snow fell in Memphis last week, followed by a sustained cold snap. With the forecast calling for temperatures to climb into the 50s, the city expected to see significant melting of the snow and ice that accumulated on streets, sidewalks and roofs. The storms also left more than 330,000 from Virginia to Louisiana without power.

At least 76 deaths have been attributed to the weather across the country. The Tennessee Department of Health on Saturday confirmed two weather-related fatalities in Sumner County, bringing the state’s current weather fatalities to 10.

Now the problem is not enough water.

Memphis remained under a boil advisory Sunday after officials said they were concerned that low water pressure caused by problems at aging pumping stations and a rash of water main ruptures could lead to contamination. Memphis, Light, Gas & Water has not said when it expects to lift the advisory, which has been in place since Thursday.

The utility’s president and CEO, J.T. Young, compared the situation to a hospital patient in critical condition.

“We are in the red status, if you will,” Young said Saturday.

About 260,000 homes and businesses were under the advisory. Hospitals and nursing homes switched to bottled water. The Tennessee National Guard was supplying St. Francis Hospital with water.

Nearby Baptist Memorial Hospital took on some of St. Francis’ patients, particularly those who need dialysis, said Dr. Jeff Wright, a pulmonary and critical care physician at Baptist. That hospital has a water purification system for dialysis and has water reserves for tasks such as cooking and bathing patients, he said.

City officials distributed water bottles at several locations Sunday. Grocery stores struggled to keep shelves stocked with bottled water. Many restaurants remained closed.

Flights resumed Saturday at Memphis International Airport after everything was grounded Friday because of water pressure problems. Some problems still lingered, but airport officials set up temporary restrooms.

Meanwhile in Kentucky and West Virginia, workers grappled with repairs to broken utility poles and downed lines.

About 37,000 customers in West Virginia were still without electricity Sunday, down from a peak of 97,000, according to Appalachian Power. The utility planned to use helicopters and drones Sunday to identify problems in remote areas. Some homes have been without power since back-to-back ice storms on Feb. 11 and Feb. 15.

City workers repair a busted water main in McComb, Miss., on Thursday, Feb. 18, 2021. Winter storms that dumped additional snow and ice on the Deep South plunged thousands of homes and businesses into darkness and left roads impassable across a wide area. (Matt Williamson /The Enterprise-Journal via AP)

The company has identified roughly 1,500 separate locations that need repairs and warned that while repairs are being made, the work remains difficult. In Wayne County, workers had to replace the same pole three times because trees kept falling on it.

About 30,000 customers remained without power Sunday in Kentucky, including more than 14,000 Kentucky Power customers in the state’s eastern reaches, according to poweroutage.us, a website that tracks outages.

Utility officials said some of their customers are still recovering from the recent paralyzing winter weather, particularly in Boyd, Carter and Lawrence counties. More than 2,000 Kentucky Power employees, foresters and assessors were working to get power restored.

Meanwhile, in middle Tennessee, power outages remained for approximately 3,300 residents as of Sunday.

Water issues plagued parts of Mississippi as well. In Jackson, most of the city of about 161,000 had no running water on Friday. Crews pumped water to refill city tanks but faced a shortage of chemicals for treatment because icy roads made it difficult for distributors to deliver them, Mayor Chokwe Antar Lumumba said.

He said the city’s water mains are more than 100 years old and not built to handle the freezing weather that hit the city as multiple storms dumped record amounts of snow across the South.

“We are dealing with an extreme challenge with getting more water through our distribution system,” said Lumumba.

The city was providing water for flushing toilets and drinking, but residents had to pick it up, leaving the elderly and those living on icy roads vulnerable.

Meanwhile, the White House said about a third of the COVID-19 vaccine doses delayed by the storm were delivered over the weekend. The weather created a backlog of about 6 million doses as power outages closed some vaccination centers and icy weather stranded vaccine in shipping hubs.

White House press secretary Jen Psaki told ABC’s “This Week” that about 2 million of the 6 million doses have gone out.

“We expect to rapidly catch up this week,” she said.

In Nashville, Tennessee, local COVID-19 task force leader Dr. Alex Jahangir said more than 2,300 seniors and teachers got vaccinated Saturday as the city resumed offering shots after days of treacherous weather.

Due to the wintry mess, local health officials last week vaccinated more than 500 people with doses that otherwise would have expired, including hundreds at homeless shelters and residents of a historically Black neighborhood who were mostly seniors with underlying health conditions.

President Joe Biden is eager to visit Texas, which was hit especially hard by the weather, Psaki said. Biden hopes to travel to the state this week but “doesn’t want to take away resources” from the response, she said.

“He is eager to go down to Texas and show his support,” she said. “But he is also very mindful of the fact that it’s not a light footprint for a president to travel to a disaster area.”

Houston Mayor Sylvester Turner told CBS’ “Face the Nation” that Biden can come anytime.

“We certainly would welcome him,” Turner said.

Texas Rep. Michael McCaul told CNN’s “State of the Union” that federal disaster relief can be used to help Texans hit with skyrocketing energy bills, repair burst pipes and repair flood damage.

___

Associated Press writers Jonathan Mattise in Nashville, Tennessee, John Raby in Charleston, West Virginia, Hope Yen in Austin, Texas, Leah Willingham in Jackson, Mississippi; and Zeke Miller in Washington contributed to this report.

Was this article valuable?

Aviva study reveals how consumer habits and buying behaviours changed in 2020

  • A third of UK adults made more purchases at local independent stores in 2020
  • A quarter of people spent less on grooming products in 2020
  • One in six UK adults cancelled a gym membership in 2020 – but one in 10 signed up for online fitness classes or subscription services
  • One in 10 households reduced the number of vehicles owned during 2020

UK adults revealed a taste for local shopping and casual clothes in 2020, while grooming products were shelved.

The latest How We Live study from Aviva, a new study of 6,000 UK adults, reveals how people’s consumer habits and buying behaviours changed in 2020.

A third of people (33%) shopped at more local independent stores, while a fifth (21%) bought more items from charity / pre-used suppliers. Overall, almost a third of households (30%) bought fewer clothes and shoes for themselves and their families, while a similar number (29%) purchased more casual clothes rather than formal wear.

When it comes to groceries, one UK adult in 10 (10%) signed up to a food box subscription service in 2020, while almost a quarter of households grew some of their own food (24%).

Gyms appear to have taken a hit, with one in six people (16%) cancelling a membership in 2020, and a further 16% considering doing so in the future. More positively, there is evidence of a boom for online exercise services, with one in 10 (11%) saying they signed up to online classes / subscription services during 2020.

In addition, there are many more people who are considering making such changes, but have yet to take the plunge.

Aviva’s study discovered:

Age variations

Many of these modified behaviours were fairly consistent across all age groups, but some actions were considerably more popular amongst younger consumers.

Under-25s were five times as likely to subscribe to food box / meal subscription services than over-55s (20% vs 4%), and twice as likely to take up a new TV subscription (28% vs 13%). Similarly, more than one in five under-25s (22%) joined online exercise classes or a fitness subscription, compared to just 4% of over-55s.

Sarah Applegate, Head of Risk, Aviva General Insurance says: “Consumer behaviours underwent an overhaul in 2020 and we can expect some of these trends to continue, particularly as more businesses adopt models which allow for home working. This is likely to influence how many cars households own, the clothes people purchase and possibly even their personal grooming habits!

“If people make significant changes at home, such as selling a vehicle or building an extension to allow for home-working, we’d urge them to get in touch with their insurer to make sure their policies are up-to-date and their cover is suitable for their evolving lifestyles.”

Lockdown 3 – What are the current rules on going to work?

Authored by AXA and their exclusive legal partner rradar

The Devolved Administrations of the UK have issued their own guidance and regulations on these matters. Please check the appropriate Government website for the rules that apply to you in England, Scotland, Wales and Northern Ireland.

Measures taken included restricting or closing certain businesses and requiring employees to only leave their home for work if they could not reasonably work from home.

Those who leave home without a ‘reasonable excuse’ could face a fixed penalty or prosecution. Work is deemed a ‘reasonable excuse’ but only if an employee cannot reasonably work from home. Employers should do what they can to facilitate home-working, including providing I.T and equipment.

CLICK HERE to download

AXA UK reduces gender pay gap

  • The median pay gap is 0.5% narrower than last year and the bonus pay gap is 0.7 % narrower
  • The key driver for the gaps remains gender distribution across junior and senior roles
  • Efforts to achieve parity and inclusivity continue through adapting recruitment processes, encouraging senior leadership action and raising awareness across the wider business

AXA UK’s gender pay gap report shows the insurer has narrowed the difference between the pay and bonuses paid to men and women.

Based on hourly rates on 5 April 2020, women at AXA UK earn 20% less than men in median terms, and 22% less in mean (average) terms.

UK’s pay gap is narrower than last year by 0.5% in median terms but remains unchanged in mean terms.

The key underlying cause for the discrepancy remains the gender distribution at different levels in the organisation: more women work in junior roles and more men in senior roles. Also, more men work in business areas which attract higher wages, for example IT and actuarial, although this is a secondary factor.

Regarding bonuses, women receive 24% less than men in median terms, and 48% less in mean terms. The bonus gap is narrower than last year by 0.7 % in median terms. However, it increased by 5.2% in mean terms due to a change in the timing of our performance share allocations to senior roles, where there is a higher proportion of men.

“All our colleagues should feel that they are valued individuals and addressing the factors that lead to a gender pay gap is a key business priority to ensure they do. We’ve made some good progress over the last year, but there remains much more to do. That’s why we continue to transparently assess our endeavours in the gender pay gap report. We remain focused and committed to narrowing the gap in pay and promoting inclusivity within our organisation in the years to come.”

— Claudio Gienal, Chief Executive Officer, AXA UK & Ireland

Focus on improvement

Narrowing the gender pay gap within AXA remains a priority, and efforts have focused on adapting recruitment processes, encouraging senior leadership action and raising awareness across the wider business.

At a global level, AXA is included in the 2021 Bloomberg Gender Equality Index (GEI), which tracks the performance of public companies committed to disclosing their efforts to support gender equality through policy development, representation and transparency.

In the UK, where AXA ranked 24th in the top 50 Best Places to Work Glassdoor Awards for 2021, diversity and inclusion initiatives have included:

  • Using a candidate assessment tool that offers a stronger talent pool and results in a better mix of genders for new hires
  • Setting diversity targets in the executive bonus scorecard and coaching the Management Committee and senior leaders on diversity and inclusion
  • Having senior leaders sponsor Employee Resource Groups: ABLE for colleagues with disabilities or caring responsibilities, Balance for gender equality and working families, Pride for LGBT+ colleagues, and REACH for Race, Ethnicity and Cultural Heritage
  • Rolling out an Inclusion Allies programme, organising events and sharing resources in support of gender parity and race equality
  • Launching an Ethnicity Action Plan and signing Business in the Community’s Race at Work Charter and the Confederation of British Industry’s Change the Race Ratio

“We’re working hard to accelerate change in the balance of gender representation throughout our organisation, including at a senior level, as we recognise this is key to achieving meaningful change. During 2020, our diversity and inclusion work has been more important than ever as many of our colleagues have been working remotely. We’ve focused not just on gender but on ethnicity, disability and sexual orientation inclusion with an aim to build stronger foundations for change across our whole workforce.”

— Lucinda Charles-Jones, Group HR Director, AXA UK & Ireland

Based on hourly rates of pay 5 April 2020

The annual gender pay gap report helps assess the progress achieved towards parity between men and women, but AXA UK supports all employees, including colleagues who identify as trans and non-binary.

Authored by AXA

McGriff Energy of Alabama Hires Jorgenson as Producer, Senior Vice President

McGriff has hired Dain Jorgenson as a senior vice president and producer in its Birmingham-based Energy Practice.

Dain Jorgenson

Jorgenson joins McGriff from Insurance Risk Partners, where he served as senior vice president and was responsible for developing new opportunities and solving complex risk transfer and project development problems in the renewables, power, oil & gas, infrastructure, and heavy chemical manufacturing industries. He previously served as vice president, Business Development, at Hayes Companies in the firm’s Power and Utility Division. He has also been a member of the Iowa Wind Energy Association for more than eight years, four of which he served as president of the board of directors.

Jorgenson will work to provide additional resources to McGriff clients in the energy industry and help drive growth in McGriff’s Renewables practice.

McGriff is a full-service insurance broker providing risk management and insurance services to clients across the United States. The firm’s coverages include commercial property and casualty, corporate bonding and surety services, cyber, management liability, captives and alternative risk transfer programs, small business, employee benefits, title insurance, personal lines, and life and health. McGriff Insurance Services, Inc. is a subsidiary of Truist Insurance Holdings.

Was this article valuable?

Investar Holding Corporation Announces Acquisition of Cheaha Financial Group, Inc. in Oxford, Alabama and 2020 Fourth Quarter Results

Investar Holding Corporation Announces Acquisition of Cheaha Financial Group, Inc. in Oxford, Alabama and 2020 Fourth Quarter Results – Insurance Industry Today – EIN Presswire

Trusted News Since 1995

A service for researchers · Sunday, February 21, 2021 · 535,677,108 Articles · 3+ Million Readers

News Monitoring and Press Release Distribution Tools

News Topics

Newsletters

Press Releases

Events & Conferences

RSS Feeds

Other Services

Questions?