Allianz Global Corporate & Specialty SE (AGCS) is pulling out of marine hull and liability business in North America and Asia in its marine line of business, the Allianz SE unit announced last week. The move is being taken to improve probability, the commercial insurance arm of Allianz said.
The move will result in a reduction in GWP at AGCS’s global marine portfolio of about $50m, an AGCS spokeswoman said.
AGCS will concentrate its marine hull and liability activities around underwriting centres in London, Paris and Hamburg, which will write domestic and international business.
The changes are effective immediately for new business and from February 1st 2020 for renewal business.
In the first nine months of 2019, AGCS booked GWP of €7.142bn, up from €756m in the same period last year (9M 2018: €6.385bn). Overall, for the year to end September, AGCS achieved 8.7% in rate increases (including renewals and new business; or 7.8% for the renewal business only).
However, the combined ratio for 9M 2019 rose to 101.2%, from 99.8% for 9M 2018, mainly attributed by AGCS to deterioration of the loss ratio as a result of a higher number of large losses compared to 2018. Operating profit fell to €250m for 9M 2019 from €274m in the same period last year. AGCS said that this was driven by a lower underwriting result, that was partly offset by higher investment income.
Source: Insurance Marine News