Strong Performance for the first half of 2013
- Total Operating Profiti £59.3m up 31% (HY 2012: £45.4m)
- Retirement new business premiumsii up 16% to £601m (HY 2012: £518m) significantly outperforming the market
- Total new business premiumsii up 12% to £631m (HY 2012: £565m)
- New Business Operating Profitiii £38.2m (HY 2012: £44.8m) reflecting budgeted investment in business for future growth
- Group IFRS Profit Before Tax £8.6m (HY 2012: £17.4m) reduced by planned one-off IPO expenses and increased interest expense (debt repaid in August 2013)
- Robust Economic Capital position with a coverage ratio of 150%
- IPO completed in June 2013 with minimal disruption to the business
- Completed four defined benefit buy-in and buy-out transactions, totalling £12.5m new business sales
- Continued investment in automated underwriting engine
- Customer service excellence with FT Adviser 5 star on-line service award
- Recruitment in key functions of finance, pricing and compliance
- Acquisition in July 2013 of £207m block of equity release assets
Commenting on these results, Steve Groves, Group Chief Executive, said:
“Following our successful IPO in June 2013, I’m pleased to report a strong set of results. We have achieved profitable growth, significantly ahead of a market temporarily disrupted by the introduction of the Retail Distribution Review and the EU gender directive, whilst maintaining our pricing discipline. This has resulted in Total Operating Profits up 31% for the first half of 2013. I remain confident in the growth prospects for both the at-retirement and care annuity markets. We are on track to meet full year Total Operating Profit expectations.”
i. Total Operating Profit is the sum of New Business Operating Profit and In-force Operating Profit, together with the long-term expected return from investments held by the Group that are not required to back insurance liabilities (termed “surplus assets”).
ii. New Business Premiums represent the value, measured as single premium equivalent (“SPE”), of new insurance contracts completed during the reporting period.
iii. New Business Operating Profit is profit generated from new business completed in the period, calculated using assumptions applicable at the time the new business was written.