IntroductionRelationshipThe way forwardClaims/Risk ConsultingTeamResultsAbout
Allianz

As you say at Smiths you are:

At AGCS we are here to support your vision

Introduction

On behalf of the whole Allianz Global Corporate & Specialty (AGCS) team, we are delighted to provide this tender response to continue to build on our existing relationship with Smiths.

The pace of change for the world we live in continues to accelerate rapidly and the uncertainty of our times increases as we have seen so clearly this year. Consistency and certainty have never been more valuable but innovation and evolution are equally critical. That’s why AGCS is committed to creating strategic, long-term partnerships with our customers to manage the fast evolving risks of today and tomorrow, together.

Our long-standing relationship with Smiths is a great example of this and we are proud of what we have built. I know from our recent conversations engaging around this renewal that you place as much importance on partnerships as we do and we are excited at the prospect of how we can continue to work together for the long term. This is why we are pleased to offer you Long Term Agreements in both Property and Liability as detailed in our tender information.

Both Smiths and AGCS are global, multi-faceted organisations spanning different industries and sectors. This alignment in expertise and focus allows us to fully understand the complexities of your business and the risks you face. We are expertly positioned to continue support your needs through our dedicated, multi-disciplined, global team of experienced risk consultants, engineers, claims and industry experts, tailored especially to Smiths.

Thank you for the opportunity to participate in this tender. If you have any questions please do not hesitate to contact me directly or reach out to any of your expert AGCS team detailed throughout the document. We look forward to hearing from you.

‍Alfredo Alonso

Managing Director, Regional Unit London & Nordics AGCS
Phone: +44 203 451 3138
Mobile: +44 7500 779323
Email: alfredo.alonso@allianz.com

‍Alfredo Alonso

Managing Director, Regional Unit London & Nordics AGCS
Phone: +44 203 451 3138
Mobile: +44 7500 779323
Email: alfredo.alonso@allianz.com

Alfredo Alonso
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Alfredo Alonso

Allianz/Smith Group Relationship

1
2

Current Involvement - cUSD 1.6m AGCS net premium

Property

Lead 45% of USD600m limit - held since 2017
‍

Liability

Medical Products Liability
General Liability excess layers

(Held in excess of five years)

Aviation

Products Liability - held in excess of five years

Claim for Flex Tek paid 2017 $11.35m

Journey Together So Far...

Property

  • Delivered on the move from a long standing relationship with FM
  • Provided a comprehensive proposition around price, coverage and capacity
  • Put in place a Global Programme with 63 territories and 31 local policies including the Master
  • Created and delivered a robust Risk Consulting programme
  • Rolled out the MyAGCS programme and training to a number of Smiths and Marsh employees
  • Maintained continuity of underwriter on the account

Liability

  • Whilst having lost the primary General Liability programme in 2017 we stepped up to the plate in 2018 to write the primary Medical Products programme
  • Maintained continuity of underwriter on the account

Operations/Multi National

  • As highlighted in Property above we have delivered on providing a multi-national local policy solution for Property and Liability
  • Weekly pulse calls are held to review ongoing activity
  • Look to enhance the process each year with earlier pre-renewal engagement as an example

General

  • Quarterly tripartite stewardship meetings held to review progress
  • Smiths access into Allianz senior management by way of the Client Advisory Board,
  • Board dinners and adhoc meetings as required
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The way forward

1
2
3

General

  • Wish to closely engage all the way through the process as we move through 2020 on these and other lines
  • Within our Multi-National area we wish to roll out in more detail our Escalation and KPI process
  • Continue weekly pulse calls and stewardship meetings as required
  • Discuss with you the findings of the Marsh Risk Optimisation work which is due to report in a couple of months

Property

  • Whilst there is very much a desire to renew this line we will need to engage with you and Marsh through the process.
  • There will be changes to;
    – Pricing
    – Coverage

    In addition there will be challenges on some limits such as Californian Earthquake and we will need to complete work around the fronting for the panel and Captive
  • Finalise the Property Risk Consulting survey programme for 2019/2020

Liability

  • Keen to lead the primary non medical Liability programme once again
  • Maintain a position on the excess of loss (medical and non-medical)
Smiths Group is a risk managed account with whom we wish to continue and build upon our existing relationship and be a key insurance partner across a number of lines of business.
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Claims/Risk Consulting

1
2

Claims

  • Kieran Goodman (Liability) and Kiera Cottam/Martin Beswick (Property) have been at the forefront of claim engagement
  • Claim scenario sessions have been held on both lines with positive feedback
  • Recent flood incident in Merythr Tydfil. Notified on 18 Feb with Loss Adjuster on site on 19th. Feedback from Chloe to Martin - ‘Appreciate your help and the speed with which this is being handled’

Claims Protocol

A failure to have in place necessary claims protocols can potentially hinder attempts to mitigate or reduce losses, prevent the Insured from resuming business activities within the quickest possible time-frame and ultimately delay settlement of insured losses. This is why Claims protocols are agreed in advance through face-to-face dialogue ensuring that details are discussed prior to inception.

Risk Consulting

We are a strong advocate of holding regular claims scenario testing workshops and have received excellent feedback from our existing clients. We believe it provides an excellent opportunity to review the claims protocol and have open discussion on a variety of claims topics. Just as importantly we believe it provides the opportunity to have a closer claims relationship with our clients.

Risk Consulting

Allianz Risk Consulting Property applies a consultative approach to find the best solutions for preventing or reducing potential client losses. Loss control programs are agreed and based on client risks and needs, and are managed by a dedicated account engineer who serves as the client’s single point of contact. The account engineer is the technical liaison between client, broker and our underwriters, and is responsible for coordinating a program of site surveys and projects.

Marianna Grammatika is the Property Account Engineer.

She has led the following;

  • Developed and implemented a bespoke Property Risk Consulting programme
  • Engaged and supported various divisions and sites across Smiths
  • Divisional summaries produced and annual ARC stewardship held to provide overview on activity.
    ‍
  • Project review work undertaken on;
  • Upgrade of existing Sprinkler Project (Smiths Detection, Hemel Hempstead, UK);
  • New Sprinkler Project: Smiths Interconnect (Tijuana, Mexico);
  • Spray Drying Project: John Crane (Morton Grove, Illinois);
  • Sprinkler Project Smiths Medical (Scotland);
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The Servicing Team

Account Management
Underwriting
Claims
Multinational Client Services
Risk Consulting

Alfredo Alonso

Managing Director, Regional Unit London & Nordics
+44 (0)203 451 3138
alfredo.alonso@allianz.com

Danny Turner ACII

Key Account Manager
+44 (0)20 3451 3990
danny.turner@allianz.com

Property

Piers Kersley

Senior Property Underwriter
+44 (0)20 3451 3487
piers.kersley@allianz.com

John Lawrence

Property Underwriter
+44 (0)20 3451 3792
john.lawrence@allianz.com

Casualty

Steve Herron

Executive Liability Underwriter
+44 (0)20 3451 3219
steve.herron@allianz.com

Katharine Willoughby LLB, ACII

Liability Underwriter
+44 (0)20 3451 3827
Katharine.willoughby@allianz.com

Casualty US

Brian Sheriff

Underwriting Specialist | Liability Division US - Western Zone
+1 818 260 7105
lisa.stevens@agcs.allianz.com

Gisele Kendall Peurifoy

Underwriting Specialist
+1 213 279 3454
gisele.kendall@agcs.allianz.com

Aviation

Craig Armitage

Senior Underwriter - Aerospace and General Aviation
+44 (0) 203 451 3071
craig.armitage@allianz.com

Nicole Kottleitner

+44 (0)203 451 3947
Senior Underwriter - Aerospace and General Aviation
nicole.kottleitner@allianz.com

Property

Martin Beswick

Senior Property Claims Specialist
+44 (0)20 3451 3675
martin.beswick@allianz.com

Kiera Cottam

Senior Property Claims Adjuster
+44 (0)20 3451 3246
kiera.cottam@allianz.com

Casualty

Kieran Goodman

Head of Liability Claims UK
+44 (0)20 3451 3676
kieran.goodman@allianz.com

Richard Overington

Liability Claim Adjuster
+44 (0)7392 283408
richard.overington@allianz.com

US Claims

Brian Sheriff

Director Liability Claims US
+1 312 224 3666
brian.sheriff@agcs.allianz.com

Anthony Togias

Claims Specialist US
+1 314 513 1222
anthony.togias@agcs.allianz.com

Aviation

David Woodcock

Head of Aviation claims
+44 (0)203 451 3074
david.woodcock@allianz.com

Gemma Brown

Senior Aviation Claims Adjuster
+44 (0)203 451 3086
gemma.brown@allianz.com

Ayleen Frete M.A. ACII

Network & and Programme Management
+44 (0)20 3451 3223
ayleen.frete@allianz.com

Charmaine Roos Cert CII

Multinational Market Practice Leader, Regional Unit London
+44 (0)20 3451 3382
charmaine.roos@allianz.com

Charlotte Thorn

Lead - Senior Account Technician
+44 (0)20 3451 3299
charlotte.thorn@allianz.com

Allie Chadwick

Multinational Property Leader
+44 (0)20 3451 3218
allie.chadwick@allianz.com

Sam Claydon

Senior Account Technician
+44 (0)203 451 3639
samuel.claydon@allianz.com

Property

Marianna Grammatika

Senior Risk Consultant

+44 (0)7468 709 987
marianna.grammatika@allianz.com

Richard Park

Allianz Risk Consulting - Property Manager
+44 (0)20 3451 3373
richard.park@allianz.com

Casualty

Casper Joubert

A specialist with a Master in Environmental Management, a BSc. (Honors) Environmental Management and BSc Environmental and Biological Sciences.
+44 (0)7468 719850
casper.joubert@allianz.com

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Allianz Results

Allianz Group
AGCS
AGCS Commentary
AGCS Ratings

Allianz Group 12M 2019

€142.4b
Total Revenues increased 7.6%
‍(12M 2018: €132.3b)
€11.9b
Operating profit grew by 3.0%
‍(12M 2018: €11.5b)
212%
Solvency II capitalization ratio amounted to 212% at end-2019
‍compared to 229% at end-2018

AGCS 12M 2019

€9.101b
Gross premium written rose by €914m
‍(12M 2018: €8.18 b)
112.3%
Combined ratio at 12M
(12M 2018: 101.5%)
-€284m
Operating profit reduced by €566m for 12M 2019
(12M 2018: plus €282m)

AGCS Commentary

  • AGCS results have deteriorated due to a combination of higher claims activity in 2019, plus reserve strengthening in long tail claims from prior years. This reflects industry-wide trends. We are taking robust underwriting actions to recover underwriting profitability, reduce loss volatility and to optimize our business for customers under a dedicated program across AGCS.
  • In 2019, AGCS increased gross premium written by €914 million to €9.101 billion (12M 2018: €8.186 billion). This growth is driven by all Lines of Business and generally supported by strong effective rate increases of 10.8% on average across the AGCS portfolio (renewals and new business). We will continue to seek risk adequate rates across our book in 2020.
  • The combined ratio deteriorated to 112.3.% which is 10.8% p-points worse than prior year. While catastrophe losses were lower than in 2018, there was an increase in large claims from industry events which was most notable in Liability, Aviation and Engineering. In addition, the claims environment for prior-year long-tail exposures deteriorated.
  • Operating profit reduced by €566 million to minus €284 million for 12M 2019 (12M 2018: plus €282 million) as a result of a lower underwriting result partly offset by higher investment income.
  • The corporate and specialty sector remains strategically important to Allianz, and AGCS will continue to invest in transforming its business and underwriting performance under its new CEO, a process that is expected to take at least 24 months.

AGCS Ratings

AGCS Company
Standard & Poor's
A. M. Best
AGCS SE
AA (Aug 19)
A+ (Sept 19)
AGCS NA
AA (Aug 19)
A+ (Sept 19)
FFIC
AA (Aug 19)
A+ (Sept 19)
ART**
AA- (Aug 19)
A+ (Aug 17)
AGCS Japan
AA (Oct 17)
(N/A)
AGCS Re Brazil
(N/A)
A+ (Sept 19)
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About Allianz

Allianz Global

Corporate & Specialty

Over 100mn customers in more than 70 countries
147,000 employees
No. 1 insurer in the Dow Jones Sustainability Index
Allianz is the #1 insurance brand
10.8bn EUR operating profit
Approved to open China’s first fully-foreign owned insurance holding company
Entered Tech Partnership with Microsoft
Founding member of UN-convened Net-Zero Asset Owner Alliance
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Generations

Diverse age groups in teams provide knowledge exchange and a better customer understanding.

Disability

Having an accessible work environment and buildings include people with disabilities.

Cultural Diversity

Having diverse nationalities in leadership teams and projects provides various perspectives and an understanding of global businesses.

LGBT+

Psychological safety in the workplace is about awareness of sexual orientation and giving employees a safe place for coming out.

Gender Balance

Identifying and removing barriers for women in leadership is a strategic commitment for meritocracy.

Individual Needs

Different work time models give our employees flexibility in planning their work and leisure time, and promote
well-being.

Our Corporate responsibility Strategy

Low-carbon economy

As an investor and insurer we manage risks arising from climate change and promote the transition to a low-carbon economy. As a company we reduce our environmental impacts.

Our Corporate responsibility Strategy

Business integration

We manage material ESG risks and seize ESG opportunities and embed responsible business practices across our company.

Our Corporate responsibility Strategy

Social Inclusion

We contribute to building more inclusive societies, through our Encouraging Future Generations program.

CR Highlights

Asset Owner Alliance

Investment portfolio to net-zero GHG emissions by 2050

Over

115,000

volunteering hours in 2019

1.95GW

Generating capacity from 99 wind and solar investments target of -30%

Listed Equity Portfolio

Carbon Footprint

Disclosed for the first time

37.9%

of managers in the core business are female

203

Sustainable solutions generating revenues totaling €1.33 bn

Employee share purchase program

extended to 11 more countries

€29.4 bn

sustainable investments, up 17% on last year

#1

Insurer in the Dow Jones Sustainability Index for the third consecutive year

602

assessments of ESG risks

49

engagements with investee companies

More robust

materiality assessment to inform our strategy and reporting

More robust materiality assessment

to inform our strategy and reporting

-35%

overall GHG emissions reduction per employee since 2010 against a 2020 target of -30%

-53%

paper reduction since 2014 against a 2020 target of -40%

Our Digital Transformation

THE X|S|E TEAM
Our Cross-Functional Smart Evolution (X|S|E) team identifies the digital transformation needs of AGCS and our customers while investigating possible solutions.
‍
Through a combination of innovation, data science and technology, XSE works across AGCS and with external partners to identify solutions to the most pressing business problems, alongside current and future trends. With projects using Machine Learning, Artificial Intelligence, Internet of Things, distributed ledger (Blockchain) and many others, XSE challenges the way we interact with and support our clients.
The scope is broad, covering products, services and challenging existing business models, but the focus clear: putting innovation and transformation at the heart of AGCS.

AGCS Trend Compass

Emerging risks across all industries and sectors

Strategic tool that provides businesses a greater understanding of emerging risks around new technologies across all industries and sectors – and helps AGCS to identify solutions to mitigate these threats.

  • Identifies and rates the most relevant future technologies and trends ranging from “AI as a service” to “community sourcing” or “quantum computing”
  • Provides in-depth expertise and orientation on key technologies and socio-economic trends that will have a profound impact in the next five to 15 years
  • Gives businesses a greater understanding of the emerging risks around new technologies and trends
  • Helps AGCS develop innovative risk transfer solutions to mitigate evolving threats
OPEN THE INTERACTIVE AGCS TRENDS COMPASS

IN FOCUS: AGCS SERVICES

Value-added services on a standalone basis

  • We offer ‘unbundled’ services on a complementary ‘pay as you go’ basis. Depending on their individual needs, our clients can access a comprehensive and growing portfolio of risk services – either unbundled or bundled into an insurance program.
  • The AGCS Services range focuses on risk mitigation, captive fronting and crisis management solutions through the separate entity, Allianz Risk Consulting GmbH. The services are delivered through AGCS experts and engineers complemented by third-party providers.

Allianz Virtual Factory

Robotic risk mapping and assessment

Client Risk Profile

Analysis of clients’ natural hazard and man-made risks

Captive Structured Fronting

Captive management through the Allianz global network

Cyber Transparency and Risk Management

Cyber risk analysis, planning and mitigation strategies

Damage Prevention and Analysis

Failure analysis and damage prevention for industrial sector

Environmental, Social and Governance (Esg)

Identify and manage sustainability and reputational risks

Drone Survey and Inspection

Drone-based inspection and 3D risk modelling

Geographical Risk Alerts

Early analysis and notification of events across a client’s portfolio

Remote Risk Assessment

Self-service risk inspection and monitoring with instant expert support

Risk Consulting

Tailor-made risk consulting surveys and programs

“You do not only highlight the gaps but also focus on driving continuous improvement. This gives us the feeling of being a valued customer. A partnership founded on common interest of excellence in every facet of the organization.“
AGCS Client, Risk Manager
Allianz Logo

Smiths Group PLC

Tender

September 2020

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