Scottish Widows saw its protection sales rise by 31% last year largely through direct channels as it aims to become a top three provider by 2025.
The insurer reported £42m of income from new protection sales in 2022, up from £32m in 2021 – as its strategy to particularly increase business within Lloyds Banking Group (LBG) customers took hold.
In addition, Scottish Widows earned £22m income from existing protection policies, up from £20m the previous year, taking total protection revenue to £64m.
The insurer said it had also grown its overall protection market share by around 1% when comparing data from the Association of British Insurers for the nine months to the end of September.
In 2021 results published a year ago, Scottish Widows set an ambition to become the third largest protection provider in the UK by 2025.
Updating this in the latest results, the insurer said it had made “progress towards the goal of being a top three protection provider by 2025, acquiring Cavendish Online and protecting over 25,000 families, up around 50%, through the group’s direct channels.”
The insurer is in the process of updating its intermediary platform and then expects to launch an income protection product this year, Lloyds Banking Group protection director Rose St Louis told Health & Protection in September.
She added it is also considering which advisers that use loaded premiums it will work with and reviewing its annual statements.
LBG profit down 6%
Overall, the latest results from parent company Lloyds Banking Group showed a £5.56bn profit after tax for the banking giant – down slightly from £5.89bn last year.
Group chief executive Charlie Nunn said the group had delivered a robust financial performance despite the operating environment changing significantly over the last year.
“A year ago we announced our ambitious new strategy with the aim of growing our business and deepening relationships with our customers, meeting more of their financial needs,” he said.
“We have made a good start to delivery and remain confident in our ability to deliver for all stakeholders.
“We know that the current environment continues to be challenging for many people and have mobilised the organisation to further support our customers. Our purpose-driven strategy is more relevant now than ever before.
“We remain committed to Helping Britain Prosper and helping the country recover from the current economic uncertainties.”