Sep 14 2010
Life cover sales are up 40% to 63.5m pounds Sterling on an APE (Annual Premium Equivalent) basis, compared to 45.2m pounds in the first half of 2009. This includes retirement business seeing a 36% increase with an APE of 48.3 pounds (H1 2009: 35.4m pounds) while protection and savings businesses saw a 55% increase with an APE of 15.2m pounds (H1 2009: 9.8m pounds).
General insurance GWP (Gross Written Premiums) were up 37% to 546.4m pounds (H1 2009: 397.5m pounds), this includes including new business GWP up by 39% to 85.0m pounds (H1 2009: 61.3m pounds). The results also confirm that>
In asset management (LVAM), investment performance shows continued strong outperformance against benchmark for the with-profits portfolio. 85% of eligible funds are ranked in the first or second quartile of their peer groups for performance in the first six months of 2010 while H1 2010 sales exceed the total for 2009 (excluding third party institutional sales).
Mike Rogers,Although the market environment remains challenging, our focus has paid off enabling us to continue to grow profitably across the>
"In the life business, pensions and annuities spearheaded a strong performance, driven partly by legislation change moving the retirement age from 50 to 55. Profitability in life was also enhanced by improved cost control and by our development of new IFA accounts.
"In general insurance, both the direct and broker channels performed strongly. We have taken the opportunity in current market conditions to combine increased rates with growth in business volumes and this has driven improved profitability.
"Investment performance for our with-profits policyholders was ahead of benchmark. In addition, our development of a strong retail fund management franchise continues successfully, boosted by the significant increase in Standard & Poor's and Citywire ratings achieved for our funds and fund managers.
"Market conditions in the second half of 2010 remain challenging but we expect our market focus and cost control will continue to deliver trading profit growth in the second half."