Allianz Insurance has outsourced the management of its UK company car fleet to Fleet Logistics UK to help develop its carbon reduction programme and improve efficiency.

Allianz Insurance operates a fleet of 1,000 company cars in the UK, both work and management grade vehicles, which have traditionally been outright purchased for the past 14 years.

However, following the implementation of Fleet Logistics UK and a competitive tender, the entire fleet has been the subject of a sale and leaseback with ALD Automotive appointed as the sole leasing supplier for the legacy fleet.

Future orders will be placed by a competitive bid process with ALD Automotive, Alphabet and Volkswagen Financial Services.

Abigail Swartz, business services procurement manager at Allianz Insurance, said: “We are pleased to select Fleet Logistics as our fleet management provider and we’re confident this will help drive our green agenda in the UK.

“We are excited to see the results of the competitive bid process, which we believe will improve efficiency, while the change to leasing will reduce Allianz’s risk exposure.”

The Allianz fleet is split over two requirements. Around 600 work cars are used by field-based engineers who can choose from a selected range of Toyota-badged hybrid vehicles.

There are also around 400 managers who have a choice of five manufacturer brands. Each management grade has a benchmark option with a pure electric or plug-in hybrid electric vehicle, as well a choice from any conventional petrol or diesel cars.

Under the new fleet management agreement, Fleet Logistics UK will be providing its FleetCare fleet management package.

Services provided include all invoice consolidation, management information reporting, driver support and helpdesk, a CO2 reduction programme and support and policy evolution.

Sue Branston, country head for Fleet Logistics UK and Ireland, said: “We are delighted to be working with Allianz to help with its carbon reduction programme and to improve efficiencies across the UK fleet.

“After considering all operational and future financial benefits, we felt the best course of action was a sale and leaseback agreement and a move away from the traditional outright purchase arrangement, which has now been successfully implemented.

“We look forward to a long and harmonious business relationship and to working closely together going forward.”

Last year, Allianz announced a vehicle fleet deal with Toyota and Lexus as part of its commitment to create a sustainable future, which saw the Insurer switch to hybrid power.

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