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Source	Q1 2022 net result	Q1 2021 net result	Q1 2022 operating result	Q1 2021 operating result
Americas	€(176 million)	€122 million	€166 million	€161 million
The Netherlands	€156 million	€228 million	€187 million	€184 million
United Kingdom	€78 million	€(11 million)	€51 million	€39 million
International	€408 million	€37 million	€47 million	€30 million
Asset management	€41 million	€52 million	€68 million	€75 million
Holding and other activities	€(94 million)	€(41 million)	€(55 million)	€(59 million)
Group	€412 million	€386 million	€463 million	€431 million

According to the insurer, its €412 million net result in the period is partly attributed to the €372 million book gain from the sale of the group’s businesses in Hungary. More on that transaction here.

As for Aegon’s higher operating result, the company offered this explanation: “Operating result increases by 7% compared with the first quarter of 2021 to €463 million, as a result of an improvement in claims experience in the United States, the positive contribution from growth initiatives, increased fees from higher equity markets compared with the first quarter of last year, and favourable impacts from currency movements. These more than offset the impacts of increased benefit costs and outflows in variable annuities in the Americas and higher expenses.”

The group’s Solvency II ratio, meanwhile, stood at 210%.

“The first three months of 2022 have been unprecedented in many ways,” commented Friese. “The Russian invasion in Ukraine has had a devastating impact on the lives of many people and fuelled inflationary pressures and volatility on the global financial markets at a time that many economies were opening up after relaxing COVID-19 measures.

“I am proud of our colleagues who continued to effectively support and service our customers in a turbulent environment as evidenced by our results, and the substantial progress we made on our 2023 strategic and financial objectives.”

Part of Aegon’s strategy was to develop a “rigorous and granular” operating plan across the organisation, with the goal of re-allocating capital to growth opportunities. At the same time, Aegon is improving its risk profile and reducing capital ratios volatility.

The CEO noted: “We continued sharpening our strategic focus and increasing our financial flexibility with the completion of the divestments of our businesses in Hungary and Turkey to Vienna Insurance Group, and the sale of part of our European venture fund.

“The closing of the sale of our Hungarian businesses resulted in an increase in cash capital at the Holding to €1.8 billion. This enabled us to announce a €300 million share buyback programme and a further reduction of our debt, thereby reaching our deleveraging target range 1.5 years early.”

Aegon’s operational improvement plan consists of over 1,200 detailed initiatives designed to improve operating performance by reducing costs, expanding margins, and growing profitably. Of these initiatives, more than 900 have already been executed.

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Insurance giant Allianz has already stopped accepting new business in Russia amid the Russia-Ukraine conflict. Now, chief financial officer (CFO) Giulio Terzariol has said the insurer is very likely to cut all ties with the country.

After the release of Allianz’s financial results for the first quarter of 2022 (Q1 2022), Terzariol said the insurer is very likely to rule out new insurance and investments in Russia after it invaded Ukraine.

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In June 2021, climate protestors laid a sensory assault on Lloyd’s of London, setting off a stink bomb outside the main entrance of the world’s oldest insurance marketplace to protest its ongoing support of fossil fuel projects.

This followed shortly after the same group of activists, known as Insurance Rebellion, used a tipper truck to dump a large pile of fake coal at Lloyd’s headquarters in April, blocking the entrance with two meters cubed of black rubble.

Concerned about similar incidents, Lloyd’s hopes that holding its 2022 AGM virtually will ensure its members’ safety and security, and allow for the meeting to proceed in an orderly and fair manner.

“It is with regret that I must now strongly encourage all members attending the AGM to join virtually and not attempt to enter the Lloyd’s building on that day,” said Carnegie-Brown.

Lloyd’s distributed the invitation to its members, which included instructions on joining the virtual meeting and the AGM Guidance Document referenced within. It also encourages its members to submit their questions to the Lloyd’s Secretariat team in advance, where possible, to maintain the smooth conduct of the online meeting.

Lloyd’s has been facing protests from climate campaigners for many months, revolving around insurance coverage for industries that could worsen climate change.  

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A recent report from Insurance Business (IB) outlined several of these advantages in addition to raising that all-important question – are electric cars cheaper to insure than petrol or diesel vehicles?

So, what are the benefits of electric vehicles?

1. Lower fuel costs

As the report by IB’s Mark Rosanes highlighted, the largest savings made by drivers in the switch to EVs is around the cost of charging the vehicles rather than having to pay for petrol or diesel.

Data gathered by LV= revealed that EV drivers pay just £467.40 on average to charge their cars annually, based on driving 8,000 miles, while those who use petrol and diesel to fuel their vehicles pay £1,199.40 to cover the same mileage – a £732, or 61%, difference.

LV= also found that if motorists have an electricity tariff with a reduced off-peak overnight rate, then the annual cost of charging an EV is reduced even further to just £180.59.

2. Tax exemptions

Tax exemptions are a core benefit of opting for an EV as, due to the fact they produce zero emissions, they are exempt from road tax and congestion charges. In addition, drivers will also pay just 1% benefit-in-kind (BIK) tax. Meanwhile, the owners of petrol and diesel cars are required to pay £155 in car tax from the second year of the vehicle’s purchase onwards – apart from a one-off first-year rate, which varies depending on how much carbon dioxide (CO2) the car produces.

3. Access to government grants

On the subject of government grants, the UK government offers up to £2,500 in financial assistance for buyers of electric cars worth under £35,000 under the Plug-in Car Grant (PiCG). Over half of all EVs available on the market – including the Fiat 500e, Hyundai KONA Electric, Mazda MX-30, Nissan Leaf, Peugeot e-208, Renault Zoe, and Volkswagen ID.3 Pro – are eligible for this discount.

EV owners can also access a range of government-sponsored benefits for installing electric car charging points in their homes such as the Electric Vehicle Homecharge Scheme (EVHS) for flat owners and tenants, and Energy Saving Trust Home Chargepoint Funding for Scottish residents.

4. Lower maintenance and servicing costs

As EVs traditionally have fewer moving parts than their petrol and diesel equivalents, they are less likely to break down as they age and, so, are also much cheaper to maintain. Average annual maintenance costs, which include a service and replacement tyres and brakes, are almost £200 less expensive, according to LV=’s index.

Read more: What are the benefits of electric vehicles?

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Ten months following the Upper Tribunal’s decision in the Tax and Chancery case Stuart Malcolm Forsyth v The Financial Conduct Authority and The Prudential Regulation Authority, the Financial Conduct Authority (FCA) has now confirmed its response to the tribunal’s recommendations.

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Its performance in Q1 2022 is broken down by business division in the table below.

	GWP 31 March 2022	GWP 31 March 2021	% increase/ (decrease)	Year to date Rate change
	$m	$m	%	%
Cyber & Executive Risk	342	232	47%	49%
Digital*	47	32	47%	19%
Marine	94	100	(6%)	5%
Market Facilities	71	42	69%	6%
Political, Accident & Contingency	106	84	26%	3%
Property	130	113	15%	6%
Reinsurance	93	97	(4%)	13%
Specialty Lines	346	271	28%	5%
OVERALL	1,229	971	27%	17%

Business update

Beazley highlighted that, from Q2 2022, its results will be presented on the basis of its new divisional structure – Cyber Risks, Specialty Risks which combines Specialty Lines with Executive Risk, MAP Risks which brings together its Political, Accident & Contingency division with Marine, Property Risks which now includes its primary Property book and Property Reinsurance division, and Digital.

The divisions will be interconnected and able to operate at scale, Beazley said, and will look to generate efficiencies and enable innovation to benefit the insurer’s clients and brokers.

Claims update

Claims experience during Q1 2022 was better than expected, the insurer stated, as it saw further improvements in ransomware frequency following continued underwriting actions.

Russia’s invasion of Ukraine led to a small number of claims to date and Beazley has reviewed all areas of its underwriting portfolio to identify classes that may be directly impacted. Relevant areas of exposure are political violence, trade credit, aviation and marine – and its initial estimate of exposure to the Russia-Ukraine conflict, excluding aviation, is approximately $50 million net of reinsurance.

Other items

Q1 2022 saw Beazley dip to an investment loss of $92 million, a far cry from its gain of $27 million in Q1 2021. Meanwhile, its combined ratio guidance remains around 90% for full year 2022.

Commenting on the results for the quarter, Cox highlighted its GWP increase of 27% and that its growth is slightly ahead of its expectations across all divisions. This was largely driven by Cyber, he said, which saw rates double in Q1 2022. While the overall rating environment remains positive, he added, the rate change across parts of its business is beginning to moderate.

“The impacts of the war in Ukraine go far beyond those which are financial, and our thoughts are with everyone who is impacted by this terrible conflict,” Cox said. “We continue to monitor the situation closely and have assessed our potential exposures across our business. To date we have seen a small number of claims with respect to the conflict and we remain confident in our combined ratio guidance of around 90% for the full year.”

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Legal expenses and assistance provider ARAG has expanded its corporate sales team with two new hires.

ARAG has named Jay Curtis as corporate account manager. Curtis has nearly 25 years of experience in the insurance industry – half of which has been spent in the legal expenses market. His career includes claims, underwriting and business development roles, and he has worked for several major brands, such as RSA and Hiscox.

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Allianz SE has announced the election of a new supervisory board at its annual general meeting this week. Rashmy Chatterjee, chairwoman of the board of management of ISTART Global Ltd, London, was elected to the Allianz SE supervisory board for the first time. Sophie Boissard, Christine Bosse, Michael Diekmann, Dr. Friedrich Echiner and Herbert Hainer were all re-elected to the board.

In order to gradually form a “staggered board” for the future, shorter terms of office had been proposed for some candidates, rather than the regular four-year terms. In line with that proposal, Boissard, Chatterjee and Diekmann were elected for four years, Eichiner for three years, and Bosse and Hainer for two years.

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The new structure was designed to respond to and better reflect current market dynamics and ensure the business remains relevant and influential and continues to provide high-quality service to existing and new clients and the broker community.

Commenting on the new structure, Postlewhite noted considerable growth opportunities across the products that QBE Re offers.

“Our new structure will enable us to deliver on our strategic ambitions for sustainable growth. Our aim is to create a QBE Re that is easier to do business with and creates a more consistent experience globally for our clients as our teams work more collaboratively across all of our offices. QBE Re is a strong business, but in order to achieve our aspirations, we need to continue to adapt and evolve to meet changing clients’ needs. This is a critical step in that process,” he said.

As part of its strategy, QBE Re also made senior executive changes, including appointing Peter Wilkins as the chief underwriting officer (CUO), a newly created role that enables him to take ownership of the underwriting performance, strategy, and planning. He will be based in London and report to Postlewhite.

The reinsurer also appointed a global product leader for each line of business, reporting to Wilkins and responsible for providing underwriting expertise, governance, and oversight for each product globally:

• Paul Horgan, head of property, QBE Re
• Tim Barber, head of casualty, QBE Re
• Simon Parkinson, head of accident & health, QBE Re
• Shane Lawlor, head of specialty, QBE Re
• Bruno Guelle, head of life, QBE Re

Local offices in London, New York, Dubai, Bermuda, and Europe (Brussels and Dublin) will continue to be led by a general manager who will be responsible for strategic development, growth initiatives, and delivery of the P&L in each location and will work closely with the CUO and global product leaders.  

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Christopher Townsend, member of the board of management of Allianz SE, commented: “In accordance with our enterprise strategy to expand our leadership position through scale and new partnership models, Allianz is pleased to accelerate its growth in this important region through a partnership with the undisputed market leader.

“Sanlam’s capabilities extend our local reach and market penetration, and the joint venture allows us to establish leading positions in key growth markets for Allianz. Further, Sanlam shares our company values, our purpose of securing the future for our clients, and our long-term, generational approach to growing in new markets.”

Allianz and Sanlam expect the combined entity to rank in the top three in most markets where it will operate and have a combined total group equity value (GEV) in excess of 33 billion South African rand (around €2 billion). The combined entity will include Namibia at a later stage, but exclude South Africa.

Sanlam group CEO Paul Hanratty said the deal will strengthen the company’s leadership position in multiple key markets that are core to its strategy to build quality and scale in Africa.

“In line with Sanlam’s stated ambition to be a leading Pan-African financial services group, the proposed joint venture will enable us to take a significant step towards realising that ambition,” Hanratty said. “We are delighted to have Allianz as partners and believe their expertise and financial strength will add tremendous value to our businesses.”

The joint venture partnership’s chairmanship will rotate every two years between Allianz and Sanlam, with the CEO named in due course. In addition, the agreement is still subject to certain conditions precedent, including but not limited to the receipt of required approvals from competition authorities, financial/insurance regulatory authorities, and any customary conditions that Sanlam and/or Allianz will be required to fulfil for each jurisdiction.

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