Allianz and QBE Insurance: Comparative Analysis of Business Strategy

This case study provides a comparative overview of Allianz Insurance and QBE Insurance, examining their histories, management teams, mission statements, and market positions. Allianz, founded in 1890 and headquartered in Munich, is a global leader in life and credit insurance, while QBE, established in Australia in 1886, is a strong player in the non-life insurance segment. The analysis includes recent industry changes, such as Allianz's investment in renewable energy and QBE's partnership with Jupiter for climate risk prediction. The study highlights the strengths, weaknesses, opportunities, and threats (SWOT) for both companies, including rising competition, diversification opportunities, and increasing risks from natural disasters and fraud. QBE's recent sale of its Australian travel insurance business is also noted, providing a comprehensive view of these two major players in the insurance industry. Desklib provides past papers and solved assignments for students.

Company Overview of Allianz insurance and QBE insurance
Allianz insurance-
History- Allianz insurance was founded in 1890 by two persons: Carl Von Thieme and Wilhelm
Von Finck. In 1904, sole leadership was taken over by Paul von Naher. By 1914, it entered a
number of markets like Belgium, Netherland, Italy, just to name a few. It became the largest
maritime insure in Germany by 1914. After that, it has gone through many up and down with
many cases of merger and acquisitions. In the year 2017, the Allianz made a profit of 6.8 billion
Euros.
Management team- the senior management has been changed much time since its foundation.
Now the managing head is Oliver Bate who assumed charge in 2015
Location- it is operated all over Europe and many other nations
Headquarters- headquarter is in Munich, Germany
https://en.wikipedia.org/wiki/Allianz
Mission statement- To provide services recommended by clients and be strong competitor,
making it the best company to work for the best combination of profit and growth
https://www.allianz.co.uk/content/allianzcouk/en_gb/application/content/documents/company-
documents/allianz-mission-and-values/jcr:content/documentProperties/currentDocument.res/
Allianz-mission-and-values-statements.pdf
QBE history
Originally, it was called as North Queensland insurance Co, when it was first founded in 1886 in
Townsville in Northern Queensland, Australia. The company was founded by two Scottish
migrants: James Burn and Robert Philp. It merged with three companies in 1973. QBE
represents the name of those 3 companies. Since then, the merger and acquisitions are taking
place according to the exigencies of time.
Management team- the person named Pat Regan was appointed group CEO in January 2018
Location- Australia
Headquarter- Sydney
https://en.wikipedia.org/wiki/QBE_Insurance
mission statement- QBE helps people achieve their goals by helping them manage risks
https://www.google.co.in/search?
q=Mission+statement+of+QBE+insurance&oq=Mission+statement+of+QBE+insurance&aqs=ch
rome..69i57.10175j0j7&sourceid=chrome&ie=UTF-8
what is happening in the industry as a whole?
Allianz insurance
Allianz insurance is the brand name and has good fiscal condition. It has around 1,50000
employees. It is the leader in life and credit insurance market. The asset management
operations of the company are well sorted out. It has certain weaknesses also. The rising
competition and controversies related to world war 2 have dented the image of the company. In

addition to this it is heavily dependent on automobile market. It has the great opportunity to
expand its operations and diversify portfolios for customers. The retirement insurance market is
on boom so the company has the opportunity to do better.
There are some threats also like changing government regulations and economic crisis. In
addition to this the number of natural disasters is increasing along with increase in number of
frauds.
https://www.mbaskool.com/brandguide/banking-and-financial-services/595-allianz.html
QBE insurance
QBE is the strong player in non life insurance segment of Australia. It has good capital
advocacy and geographically diversified market. it is present in around 45 countries and has
15000 employees. It has made prudent acquisition decisions which have increased its strength.
The weaknesses of the company includes high reliance on the third party and declining
underwriting profitability. There are enormous opportunities for the company in Australian
market and foreign countries. It has an opportunity to diversify its financial services.
This organization faces same threats of competition due to adoption of insolvency 2 norms,
increased frauds and natural disasters.
https://www.mbaskool.com/brandguide/banking-and-financial-services/7842-qbe-insurance-
group.html
What are all the new changes happening in the industry?
Allianz insurance-
Recently in October month, the Allianz capitals, on behalf of Allianz insurance acquired the first
subsidy free solar project in Iberia. In addition to this, Allianz registered the profit of 3 billion
euros in the third quarter of the year 2018. Allianz recently launched a portal to simplify the
operational requirements.
https://www.allianz.com/en_GB/press/news.html
QBE
QBE has recently partnered with Jupiter which is an emerging company in the sector climate
risk prediction and management. The CEO of the company said rising climate risks have
become a threat for insurance companies so the deal with Jupiter assures long term
survivability of the organization.
https://www.qbe.com/au/media-centre/press-releases/qbe-partners-with-jupiter-to-take-on
In another development QBE sold its Australian travel insurance business to nib holdings
limited to simplify and strengthen the business.
https://www.insurancenews.com.au/breaking-news/qbe-sells-travel-insurance-business-for-25-
million