Zurich has seen its life insurance business grow as the multi-national focuses on increasing its protection sales.
The insurer reported growth in its protection sales in the UK and its overall global life operations as profits also soared.
In the UK, Zurich reported life protection annual premium equivalent (APE) sales of £133m in 2021, up 4% from £128m in 2020.
Its reported new business value (NBV) almost doubled to £66m from £37m in 2020, which it said reflected improving margins across its retail and corporate risk businesses.
As a result the UK life arm more than doubled its business operating profit to £99m, up from £44m in 2020.
Combined with its property and casualty (P&C) business, Zurich UK’s full-year business operating profit was £470m, up from £111m 2020, which was impacted by Covid-related claims.
The insurer also paid a total of £2bn in claims across all UK business areas.
Tim Bailey, CEO of Zurich UK said: “We achieved strong results in 2021, with an acceleration in revenue growth returning profits to pre-pandemic levels.
He continued: “Our life business has continued to grow, delivering a solid performance over the full year, despite the ongoing economic and claims impact of the pandemic.
“This result is testament to the strength and breadth of our proposition, and commitment to improving the customer experience.”
Global outlook
On a global basis the insurer said it had achieved one of its best results in its history reporting a group business operating profit rise of 35% to US$5.7bn in 2021, and that it expects to meet or exceed all its 2022 targets.
It said the life business delivered a strong performance in 2021, with a continued focus on executing its long-term strategy to grow protection and capital-light savings products.
The life business operating profit was up 27% to US$1.8bn and on a like-for-like basis, it improved this figure by 20%, driven by higher fee revenues and improved claims experience excluding Covid-19.
Life new business annual premium equivalent (APE) sales returned to growth, with a 5% increase on a like-for-like basis with the rise in sales reflecting favourable momentum in unit-linked and protection products.
It highlighted good sales of protection products in Spain, Switzerland and the UK.
Group chief executive officer Mario Greco said: “Zurich has delivered the strongest performance in a long time, demonstrating the strength of our franchise, the quality and commitment of our people, and the benefits of repositioning the business in recent years.
“Higher risk-adjusted prices and continued measured progress towards our growth ambitions took P&C gross written premiums to more than US$40bn for the first time.
“The extreme weather events of 2021 again highlight the pressing need to take collective action to address climate change. The insurance industry has a natural alignment with the sustainability agenda, and I am particularly proud of our work in this area throughout the past year as we continue to reinforce Zurich’s leadership position.
“Zurich is in outstanding health as we celebrate our 150th anniversary this year.”