Legal & General has seen a 7.9% increase in protection new business annual premiums year-on-year, according to its full year 2023 results.
The results show protection new business annual premiums rose from £382m in 2022 to £412m in 2023.
UK retail protection gross premiums were up to £1,512m from £1,485m over the same period in what the insurer described as a “highly competitive” market, with new business annual premiums of £150m down from £171m in 2022.
UK group protection gross premiums rose to £479 from £427m, which the group attributed to good retention and new business annual premiums of £121m from £107m in 2022.
L&G added its online “quote and apply” platform for smaller schemes continues to perform well, processing around 900 new clients over the year compared to circa 600 in 2022, and it continues to see growth in this part of the market.
Today’s results compare to back in August when Health & Protection reported that Legal & General’s UK protection new business had fallen sharply in the first six months of 2023, as the insurer said it expected the softer housing market and cost of living to continue hitting sales.
Other results from today show that group protection saw 2,929 income protection scheme members return to work during the year.
Protection gross premiums in the US rose from £1,222m to £1,273m, with US protection (LGIA) new business annual premiums increasing by 36% to $175m (2022: $129m), with Solvency II new business margins of 11.4 % (2022: 10.6%).
Gross premiums increased by 5% to $1,584m from : $1,512m in 2022.
The group reported its digital new business platform is making it easier for customers and their advisers to apply and buy our term products, resulting in its best-ever single year sales volumes in 2023.
This, it added, is driving up market share.
L&G said it expected to drive further sales growth and to reduce unit costs over the coming years.
Over 90% of eligible new business is now submitted through its digital new business platform.
Overall, protection gross premiums rose from £3,134m to £3,264m.
Across the group, L&G reported operating profit of £1,667m, up from £1,663m in 2022 and profit after tax of £457m down from £783m in 2022.
On course to achieve record new business
António Simões, CEO of Legal & General, said: “Everything I have seen since joining the business in January has confirmed what attracted me to Legal & General.
“We have an authentic sense of purpose and stand out for our market-leading businesses, performance track record and strong balance sheet, delivered by talented colleagues.
“Our 2023 performance reflects these strengths.
“We are on course to achieve our five-year targets, and demonstrated resilience in challenging markets to achieve record new business volumes in pension risk transfer, UK annuities and US protection, increasing our store of future profit.
“Our international assets under management and alternative assets portfolio continue to grow, as does our position in the UK defined contribution pensions market.
“We must be as ambitious for Legal & General’s future as we are proud of our history. This is the right moment to take a fresh perspective, build on our track record and set out a vision for profitable and sustainable growth.
“I look forward to outlining our strategy and plans at our Capital Markets Event on 12 June.”