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Allianz told staff in the UK’s insurance sector that it would cut 650 jobs amid an increasingly tough market.
The German insurance company told employees Wednesday morning that its role would be affected by commercial, professional and personal insurance businesses, according to two people familiar with the situation.
In the UK, Allianz Insurance employs around 4,200 staff from a variety of brands, including Petplan.
Allianz UK saw an annual operating profit of 52% to £368 million last year, but its business volume rose 5.5% to £4.7 billion.
The company has flagged its private insurance division as it continues to face “a background to higher claim costs and softening market conditions.”
The business is committed to investing another £200 million this year in addition to similar amounts from last year, as well as changes to its UK business.
In February, UK CEO Colm Holmes said “the job will not be finished” as he highlighted the group’s technical expertise, pricing and driving forces to improve the digital trading.
Last year, insurance companies spent £100 million on naming the rights to Twickenham Stadium in a move that angered rugby fans.
Holmes called it “partnership activation,” raising awareness of the brand in the consumer market and launching new personal products.
In 2020, Allianz completed the twin acquisition of the Legal & General and LV general insurance businesses, but five years later, it is still in the process of rebranding across the various insurance sectors. It states that it aims to drop LV = brand in 2026.
