London, 26 July, 2001. - Zurich Financial Services today announced strong half year results for its UK, Ireland and International (offshore) Life businesses with total life and investment new business premiums rising 17% to 2 billion.
Other highlights include:
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Strong growth in UK market with total new business premiums up 17% to 1.9bn, and up 11% to 300m on an APE basis.
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UK's IFA new business premiums (APE) up 25% to 135m and Sterling, the IFA-exclusive product provider, grew by 287% over the same period last year.
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Zurich's life business in Ireland reported new business premiums (APE) up 32% to 25m.
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Zurich's International (offshore) sales up 23% to new business premiums (APE) of 43m.
UK - Independent Financial Adviser (IFA) Business
Zurich's UK IFA channel produced particularly strong results in the first half of this year reporting a 25% increase in new business premiums (APE). This result once again demonstrates the success of Zurich's strategy to develop this key distribution channel. In a difficult market for investment sales, Zurich's IFA investment new business premiums bucked the trend with a rise of 43%.
UK - Allied Dunbar Franchise Network
The Allied Dunbar Franchise Network held up well against a difficult background, with new business premiums (APE) up 2%. Despite slower growth, the Franchise Network - which is due to be renamed the Zurich Advice Network this September - is well placed for the future. It is in the process of rolling out a major electronic trading package to all advisers, aimed at improving productivity, increasing the quality of the proposition and reducing costs. Furthermore, the recently announced tie of Bristol & West to Zurich in December will add to Zurich's tied productivity next year.
Ireland
The Group trades under the Eagle Star brand in Ireland. The first six months of 2001 were outstanding with life new business premiums (APE) rising 32% over the same period last year, despite a difficult market background which included a new regulatory regime for intermediaries.
International
Zurich's International (offshore) business had a very successful first six months in 2001 with new business premiums (APE), including sales into the UK, of 58m. International sales were up 23% to 43m. Last year the Group brought its two international businesses, Zurich Financial Services International (including Eagle Star International (ESIL) and Allied Dunbar International) and Zurich Life International (ZLI) based in Switzerland, under single management. ESIL's market-leading position in corporate international retirement benefits business, together with the ZLI strength in corporate protection, has created a powerful business proposition offering expertise for international companies with expatriate and mobile employees.
Commenting on the Life results, Ray Greenshields, Chief Executive of Zurich's Life Businesses in the UK, Ireland and International, said:
"These are good results in a challenging marketplace. I am particularly pleased with our continued strong performance in the IFA sector which now accounts for about half of our UK production. Looking ahead, we are well placed for continued steady growth in the second half of the year, with major initiatives such as the launch of the Zurich Advice Network."
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