Falling profits blamed on Discount Rate

Allianz UK seen first quarter profits fall from £47.4m last year to £37.5m.

It says though, that without the discount rate change its profits would have been £46.8m.

Meanwhile, its combined operating ratio (COR) fell from 95.9% to 96.7%.

Speaking about the discount rate, Allianz UK chief executive officer Jon Dye said, ‘We would believe that the decision that was taken was wrong because of its impact on insurance cost. We do take some encouragement that Chancellor Philip Hammond reacted very promptly back in February and the consultation followed very quickly.’