AGCS RETURNS TO PROFIT ON FEWER COVID CLAIMS

Allianz Global Corporate and Specialty (AGCS) has posted a much-improved underwriting result in the first quarter of 2021, driven by a significantly lower impact from Covid-19 and a positive underwriting performance. AGCS, the large commercial and specialty arm of Allianz, recorded an operating profit of €81m in the first three months of 2021 compared with a loss of €141m in the same period of 2020. The combined ratio improved 19.2 points to 98.3% as AGCS booked Covid-19 reserves of €40m in the quarter compared to €233m in the first quarter of 2020. The insurer also reported lower frequency of claims for medium-size and large losses. Gross premium decreased by €73m to €2.94bn, as rate increases of 22% were offset by underwriting actions targeting loss making accounts and segments. The strongest rate increases were achieved in financial lines, property and aviation, but also the long-tail lines saw strong momentum on rate improvement, AGCS said.