Joe Brennan
Insurance giant Allianz’s Irish general insurance business fell into a €9 million operating loss in the first quarter as the industry continued to write business at a loss.
The Irish property and casualty business, which posted a €44 million profit for the year-earlier period, saw its combined operating ratio rise to 112.2 per cent from 100.1 per cent in the fourth quarter. The ratio between claims and costs against earned premiums is a key gauge for the industry. A figure above 100 per cent indicates an insurer is writing business at a loss.
The figures are contained on a supplementary spreadsheet published by Allianz on Wednesday with its quarterly results.
The increase in Allianz's combined operating ratio "is further evidence of the difficult backdrop for Irish insurers," said Emer Lang, an analyst with Davy in a note, adding that the figure is consistent with Dublin-listed rival FBD's view that the industry as a whole remains loss-making.
Gross premiums at the Allianz Ireland increased 18.6 per cent to €164 million.
Irish motor insurance costs rose almost 4 per cent on the month in March and over 32 per cent compared with the same period last year, according to the Central Statistics Office. Home insurance rates rose by an annual 9.5 per cent in the same month.
