Allianz is laying off 650 employees in its UK insurance division as the company navigates challenging market conditions, reported the Financial Times, citing sources.
The insurer has informed employees that the redundancies will impact roles across its commercial, speciality and personal insurance units.
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The UK arm currently employs around 4,200 staff under various brands including Petplan.
In internal communications, Allianz cited the “backdrop of higher claims costs and softening market conditions” within its personal insurance segment.
The German insurer has pledged to invest a further £200m (€233.93m) into its UK operations this year, following a similar investment in 2024.
In 2023, Allianz UK reported a 52% rise in annual operating profits to £368m, with business volume growing by 5.5% to £4.7bn.
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By GlobalDataColm Holmes, UK CEO, said in February that the “job is [by] no means finished”, pointing to ongoing efforts to strengthen technical capabilities, pricing strategy and digital trading.
The company engaged in twin acquisitions of Legal & General and LV general insurance businesses in 2020.
The group plans to retire the LV= brand by 2026 as part of its rebranding initiative.
In Q1 2025, Allianz reported net income attributable to shareholders of €2.42bn, down 2.1% from the same quarter in 2024.
