L&G grows protection business by 5%

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L&G grows protection business by 5%

Legal & General (L&G) has grown its protection premium income by 5%, according to the insurer's full year results to 31 December 2015.

Retail Protection gross premium income increased by 5% to £1,112m (2014: £1,056m) with new business annual premium of £162m (2014: £165m).

UK Protection gross premiums increased by 2% to £1,442m (2014: £1,407m) driven by new business sales and coupled with improved customer retention. 

Yesterday the insurer announced changes to its term assurance and terminal illness cover. 

L&G said it "remained the largest provider of retail protection in the UK and benefits from a highly efficient automated underwriting model and broad distribution reach".

It's direct distribution channel delivered retail protection new business APE of £29m, representing 12% growth on 2014 and now accounts for 18% of new business APE (2014: £26m, 16% of new business APE).

Group Protection gross premium was £330m (2014: £351m) with new business of £69m (2014: £65m).

Meanwhile, share prices fell as the L&G group reported that it was using a Solvency ii coverage ratio of 169% -  lower than other insurers including Aviva and Prudential.

Mark Holweger, managing director, intermediated at L&G [pictured] said: "L&G delivered yet another strong performance in its UK Protection business growing the Retail Protection Gross Premium by 5% to £1.112bn.

"We remain the largest provider of retail protection in the UK benefiting from a highly automated underwriting model, strong customer service proposition and broad distribution.

"In 2016 we will continue investing in our digital capability to drive efficiency making it quick and simple to do business for our intermediary partners and their customers."

Further reading 

L&G enhances term and terminal illness (TIC) cover

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