ALLIANZ GLOBAL ASSISTANCE TO PURSUE GROWTH: CAP OF 2 BILLION EUROS IN 2011 AND ALL 29 SUBSIDIARIES REACH BREAK EVEN
- 2011 Turnover: 2.054 billion Euros (+8.5%)
- Net Profit: 62.3 million Euros
- Combined Ratio: 96.8%
- 10,920 staff members in 29 countries
- 18 million cases treated
- 49 million calls received
Allianz Global Assistance, of which Mondial Assistance UK is a member, announces its financial results for the year 2011 and confirms its ambitions for the next three years. For the first time, global turnover exceeded 2 billion Euros (2.054 billion Euros), representing an increase of 8.5% over 2010. All geographic regions and the Group’s three lines of business, Automotive, Travel and Health & Home, contributed to growth in 2011.
Allianz Global Assistance reports a Combined Ratio of 96.8%; the Group maintained a good level of profitability in 2011 (net profit 62.3 million Euros) in a difficult context both in terms of sales and claims.
“2011 was a successful year despite the complex global environment. We are particularly proud of our results, which concretely reflect our collective efforts and commitment to our strategy. For the first time in the history of the Group, all entities reached or exceeded break even in 2011” declares Rémi Grenier, CEO of Allianz Global Assistance.
Adds Serge Corel, CEO of Mondial Assistance UK: “Economic challenges did not stop the UK from succeeding in renewing strong relationships and winning new clients across the automotive and travel assistance and insurance sectors, with our extended used car warranty notably growing by over 15% year-on-year.
“Alongside this achievement we have brought to market a new Health Division which is set to mirror the developing healthcare services of the Group. Services linked to home and daily life are a key focus of expansion for Mondial Assistance UK as we undergo our transformation to become Allianz Global Assistance in the UK later this year. Indeed, 2012 is set to be an exciting year of brand evolution for us as we bring innovation and expertise in the field of customer assistance to Allianz.”
Automotive: contrasting situations
Roadside assistance grew +10.5% in 2011 compared to 2010 and now represents 38.5% of the Group’s total turnover. The automotive market in Europe was greatly impacted by the economic crisis, while in emerging countries, new car sales posted two-digit growth. Overall, trends were confirmed as car owners and drivers today are looking for smaller, less expensive, more reliable and environmentally-friendly vehicles that are accompanied by innovative services. In this context Allianz Global Assistance pursued the development of its roadside assistance activity by focusing, in part, on high growth countries (China +64%, Brazil +14%) and on developing new offers like Extended Car Warranties. Today our financial sector clients (banks and insurance companies) represent 60% of the activity while car manufacturers represent 40%.
Travel: facing the unpredictable
In 2011, the travel sector was adversely affected by numerous events: the devastating tsunami in Japan, the « Arab Spring » Revolutions, the deepening of the economic crisis, particularly in Europe, and rising oil prices.
In this unpredictable environment, Allianz Global Assistance maintained its worldwide leadership position thanks to its ability to accompany customers on a global scale and to the development of its online sales. The Travel activity represents 44.5% of the Group’s total turnover, or an increase of 4.3% over 2010. Growth was particularly strong in Brazil (+65%), Australia (+19%), Switzerland (+16%) and Austria (+13%).
Health & Home: growth in heterogeneous markets
Representing 17% of total turnover, the Health & Home activity continued to develop, reporting 16.3% growth in 2011. Healthcare services developed, particularly in Europe (Germany, Belgium, France and Poland), but also in Australia with healthcare offers based on international mobility targeting overseas students or expatriates.
Economic growth, the emergence of a rising middle class in developing countries and weakened or inefficient healthcare systems are clearly generating a growing need for private healthcare solutions. The lack of infrastructure and local medical experts has also reinforced the need for innovative healthcare services.
Services linked to the home and to daily life continue to expand. Initially designed to respond to emergency situations (domestic flooding, accidents, etc), these services have gradually evolved toward comfort services telesurveillance, insurance for mobile phones, extended warranties for home appliances and electronics…) or leisure-related services (event ticket cancellation for shows and concerts…).
Regions: balance accelerates
Even though the Group’s activity was largely centred in Europe just a few years ago, the development of the Americas zone and high growth in Asia Pacific has established a new geographical balance among the regions.
Today Europe represents 61% of total Group turnover, up 4% over 2010. The Americas counted for 23% of total activity in 2011, up 16.6% over the previous year. The strongest growth was reported in the Asia Pacific zone (+23%), which now represents 16% of total Group turnover.
France maintains its lead position with 417 million Euros in turnover, an increase of 4%. The US entity is in second position, having realised 298 million Euros in turnover, or an increase of 18.2%. The Australian entity is in third place with 252 million Euros in turnover and 23% growth, followed closely by Brazil (134 million Euros and +17%). Created in 2003, the Group’s Chinese entity (47 million Euros) joins the Group’s top 12 entities for the first time, and reports another stellar year of dynamic growth at + 57%!
2012 – 2015: ambitions in an uncertain period
In an uncertain economic climate, Allianz Global Assistance maintains its dynamic growth ambitions. Rémi Grenier concludes: “As the world leader for over 10 years, we have, for the past several years, realised profitable development in high growth markets and we have done so while focusing on the results for the customers and the benefits that our services provide them. Structured around a global organisation and thanks to balanced lines of business and geographic presence, we are in line with our strategic plan: to generate 3 billion Euros in turnover in 2015 and to achieve an operating profit of 200 million Euros.”
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International leader in Assistance, Travel Insurance and health, life & home care services, today Allianz Global Assistance counts more than 10 920 employees who speak 40 different languages and work throughout the world with a network of 400,000 service providers and 135 correspondents covering 150 countries. 250 million people, or 4% of the world’s total population, benefit from its services, which the Group provides on all five continents.