By Favour Nnabugwu
Allianz Group and Allianz Global Corporate & Specialty (AGCS) financial result for Q4 2021 record increase in it’s gross premium written by €174 million to €9.486 billion against €9.312billion announced billion same period 2020.
AGCS delivered on its strategic goals and returned to profitability, following a portfolio remediation to secure the basis for future sustainable growth.
The positive impact from effective rate changes of 18 percent for renewal business (adjusted for terms and conditions), a higher renewal base and new business have more than offset selected corrective underwriting actions targeting unprofitable accounts and segments.
The combined ratio for 2021 stands at 97.5 oercent (2020: 115.5 percent), which is 18.0 percent better than prior year. While AGCS achieved a positive underwriting result, it has seen significant claims impact from natural catastrophes and also losses from Covid-19 (reserves booked amounted to approx. €100 million in 2021 compared to €521 million for the same period in 2020).
This result reflects AGCS’s focus on volatility management as well as the benefits of a new reinsurance structure.
AGCS’ 2021 operating profit of €366 million (2020: operating loss of €482 million) is €848 million above prior year driven by a significantly lower impact from Covid-19 losses and an overall positive underwriting performance