Allianz Australia Sees Business Rebound in 2009

Allianz Australia Group [077889] said in 2009 its business rebounded in the wake of the global financial crisis, with gross written premiums rising 10% to more than A$2.8 billion (US$2.6 billion) and pretax net profit up 60% to A$484 million from 2008.

The insurance group's underlying combined operating ratio, excluding discount rate adjustment, was 95.5 in 2009, compared with 98.6 in 2008.

Terry Towell, managing director of Allianz Australian Group, said in a statement the 10% gross written premium growth in a year with all the uncertainties and economic impacts of the global financial crisis is a "pleasing" result.

The overall result was made up of "solid rate increases and risk count growth" with all key divisions recording "good" growth, noted Towell.

He also said the lower combined operating ratio reflects the company's improved profitability, driven by cycle management with improved risk selection and rate rises, leading to a loss ratio of 70.3 in 2009, against 73.2 in 2008.

In 2009, the insurer's expense ratio, excluding a fire services levy, was 21.9, down from 22.4 in 2008, due to "stringent" cost control.

Allianz Australia Group, which operates in Australia and New Zealand, is a wholly owned subsidiary of Germany-based Allianz S.E. [085014]. The Australian unit includes a general insurer, a life insurer and a private workers' compensation insurer. Currently, Allianz Australia Group has more than 2 million policyholders and about 3,300 staff.

(By Rebecca Ng, Hong Kong news editor: [email protected])