Zurich UK has seen its individual and group protection new business rise by 20% in 2022 while profit for the division rose by almost 80%.
According to its latest results, Zurich’s life protection sales increased significantly to £79m from £66m in 2021.
And its life business operating profit rose 79% to £177m, up from the £99m reported in 2021.
The insurer said: “In our life business, we have seen growth in new business value, reflecting the strength of our retail protection and Zurich corporate risk propositions.
“The favourable business operating profit reflects the quality of our overall life portfolio, helped by favourable claims experience and improving margins as we deliver on our strategy.”
Overall, the insurer’s UK business operating profit dropped 14% to £403m, down from £470m in 2021, and it paid more than £2.1bn in claims.
Its property and casualty (P&C) unit saw gross written premiums (GWP) up 19% to £3.7bn from £3.1bn in 2021, but operating profit fell by £145m (39%) to £226m from £371m.
Zurich UK CEO Tim Bailey said the results demonstrated the resilience of the business and balance in its portfolio.
“Despite the impact of inflationary pressures, our P&C business has continued to perform well, achieving strong top line growth across all areas and a solid combined ratio.
“We have also delivered a positive result in our life business, with both top and bottom-line growth.
“In 2023, we will continue to look for ways to stand out for our customers, distributors, and communities, while retaining our focus on making Zurich the best place to work for the widest range of people.”
Global life sales down, profits up
Across its global business, Zurich saw life sales fall by 21% from $959m to $761m – and on a like-for-like basis by 15%.
Gross written premiums, policy fees and insurance deposits fell 9% from $28.4bn to $25.9bn, with like-for-like figures unchanged.
However, its life business operating profit rose 8%, and by 23% on a like-for-like basis, to $1.96bn from $1.8bn.
Overall, the group’s full year operating profit was up 12% to $6.5bn from $5.7bn in 2021.
Group chief executive officer Mario Greco said the business had exceeded its financial targets for the second consecutive three-year period and thanked colleagues, customers and partners for it.
“These were tough years with unexpected challenges during which we had to stay very agile and focused on our goals,” he said.
“The life business achieved the highest profits ever, with a very light capital consumption. Our balance sheet remains excellent, especially as we progress with the sale of life back books in Europe.
“This, together with our strong operating results, has allowed us to propose a 9% increase in the dividend per share.
“In November, we presented our new financial targets and raised our ambitions for the next three years. Over the period 2023-2025, we will accelerate the execution of our customer-centered strategy by further extending the application of data analytics throughout the group and by accelerating digital innovation,” he added.