Allianz Global Corporate & Specialty has embarked on a transformation programme to rebuild profitability. It aims to strengthen its underwriting and claims functions and streamline its business and processes.

AGCS chief executive Joachim Mueller came into post in December 2019. In the first quarter of 2020, AGCS reported a combined ratio of 117.5%, up from 99.7% in the same period the previous year.

Announcing the transformational programme, Mueller said: “We will now focus our entire business under a new strategic direction. We will put technical excellence in underwriting before growth, simplify and strengthen our global model to ensure that we think and act as one team, and become more efficient, leaner and faster.”

AGCS will continue to focus on specialist property and casualty insurance solutions in markets including aviation, marine and entertainment. It will also continue to serve mid-size companies in the United States in particular through its MidCorp line of business.

The insurer will invest heavily to strengthen its capabilities and tools in areas including: pricing, portfolio management, loss trend analysis, volatility management and actuarial modelling. More than €100m will be invested annually in technology

This year, AGCS will cut its regional structure from 7 to 6 units. The current regions of North America, Asia Pacific, Central & Eastern Europe and Regional Unit London (including Nordics) will remain unchanged.

An enlarged Mediterranean & Africa region will consist of France, Benelux, Italy and Africa. The new Ibero/LatAm unit merges the two previous units serving Spain and Portugal, and South America. A regional managing director will lead each of these six regional units.

As part of the transformation, AGCS wants to improve its business development capabilities and will create a new Global Sales and Distribution function. Initially, it will target financial institutions, telecoms and IT, construction, and aviation and aerospace.

Mueller said: “We expect to see significant profitability improvements of our underwriting results from 2021 onwards and aim to achieve the full turnaround and transformation of our company by 2024.”

Share Story: