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Allianz has told staff in its UK insurance arm that it will be cutting 650 jobs amid an increasingly tough market.
The German insurer told employees on Wednesday morning that roles would be affected in its commercial, speciality and personal insurance business, according to two people familiar with the situation.
In the UK, Allianz Insurance employs about 6,000 staff across its various brands, including Petplan.
Allianz told the Financial Times that it had informed staff there would be a reduction in roles across the UK business, subject to consultation.
Allianz UK posted a 52 per cent increase in annual operating profits to £368mn last year, while its business volume rose 5.5 per cent to £4.7bn, figures reported in February show.
The company flagged that it was continuing to face a “backdrop of higher claims costs and softening market conditions” in its personal insurance arm.
Allianz said it was “acting in response to shifting preferences towards digital, self-service customer support and changing market dynamics in claims, particularly motor, where technology advancements have led to a reduction in the number of accidents”.
The company said it planned to cut the roles in its UK general insurance business by the end of the year.
The business has committed to investing another £200mn this year, on top of a similar amount last year, in changes to its UK business.
In February, Colm Holmes, UK chief executive, said the “job is by no means finished” as he highlighted a push to improve the group’s technical expertise, pricing and digital trading.
Last year, the insurer spent £100mn on naming rights for Twickenham stadium in a move that angered some rugby fans.
Holmes called it a “partnership activation” that helped boost awareness of the brand in the consumer market as it launched new personal and home products.
In 2020, Allianz completed twin acquisitions of the general insurance businesses of Legal & General and LV, but five years later, it is still in the process of rebranding across its various insurance arms. It has said that it aims to drop the LV= brand in 2026.
This article has been amended to reflect the latest figures for Allianz’s workforce.
