Zurich UK Life hit by 39% profit slump

The insurer's 2013 half one results revealed Business Operating Profit (BOP) fell to £60m compared with £98m in H1 2012.

This was attributed to ‘one-off' reserving benefits experienced in H1 2012 which have not been repeated in 2013. However, the company said this is "in line with the company's expectations."

Meanwhile Annual Premium Equivalent (APE) £252m also fell by 33% over the first half of this year from £376m in the same period last year.

Zurich said while performance across the Protection business had been "strong", this figure reflected the impact of RDR on Retail bond business with lower levels of single premium private banking client solutions and lower volumes from Corporate Savings (ZCS) business.

However, the new Business Value (NBV) steady at £61m (a change of -2%), maintained by the performance of Zurich's Retail and Corporate Protection businesses.

New Business Margin (NBM) was up by 7.7 points to 24.2%, reflecting its current business mix, including an increase in Protection business.

Gary Shaughnessy, chief executive at Zurich UK Life said: "The biggest success story of these results is the continued growth of our individual and corporate protection businesses as shown by the rise in our New Business Margin.

"Our market share in individual protection has reached double figures for the first time, continuing the growth we have seen over the last few years and our Group risk business has become the market leader in Group Life new business. This success has been achieved despite the difficult market conditions which have seen the protection market shrink."

Shaughnessy added given tough economic conditions and regulatory change, Zurich would still have "a lot of work to do" to maintain momentum in both the retail advisory and corporate markets.

"Our performance in the first half of the year gives me real confidence that the approach we are taking is paying off" he concluded.