Norwich Union PLC - 9 Months Business Figures
October 19 1999 - 3:01AM
UK Regulatory
RNS No 2369e
NORWICH UNION PLC
19 October 1999
NORWICH UNION NEW BUSINESS FIGURES: NINE MONTHS TO 30 SEPT 1999
Norwich Union has continued to make outstanding progress during the first nine
months of 1999. Strong growth has been achieved in its businesses both in the
UK and internationally, and worldwide new business has risen by 50% to #450m
annual premium equivalent (1998: #300m).
Norwich Union group chief executive Richard Harvey said: "These superb results
reveal just how well Norwich Union has performed in its key long-term savings
markets over the first nine months of 1999.
In the UK we have achieved an impressive 41% growth in new business sales.
Importantly, we have also seen our share of the IFA market increase while at
the same time successfully growing our direct sales operation. This strong UK
result was more than matched by a record performance from the overseas
businesses, with sales in Europe and International up by 69%.
We expect the group's out-performance to continue into the fourth quarter as
we reap the benefits of our ongoing investment in distribution, product
development and brand support".
United Kingdom: (up 41%)
In a record quarter, Norwich Union's new long-term savings business continued
its strong growth in the third quarter of 1999, with annual premium equivalent
up 41% at #292m from #207m for the first nine months of 1998. This has been
achieved by building on our strong relationships with IFAs and our growing
direct operations.
Regular premium life and pensions sales grew by 14% to #105m (#92m),
reflecting good performances across the board, particularly in creditor life
and group personal pensions.
Single premium life and pensions sales increased by 55% to #1693m (#1095m).
Sales of single premium bonds have reached #669m, which is 175% up on 1998
(#243m). Bond sales continued to accelerate during the third quarter, with
average daily sales of #4.25m, an increase of 20% on the second quarter. Group
pensions are up 47% at #103m (#70m) and annuity sales have increased by 13% to
#585m (#518m), including sales of with-profit annuities which commenced in
August. We remain fully confident that new product initiatives in the Isa
market will continue to build on our profile as a leading Cat-standard
provider.
Europe and International (up 69%)
Norwich Union's annual premium equivalent new business in Europe and
International has grown by 69% (in local currency) to #158m.
* Europe
In Europe we have extended our first half performance with annual premium
equivalent of #94m reflecting growth of 58% (in local currency). Single
premium new business increased by 33% (in local currency) to #242m, with
regular premium new business of #70m growing by 71% (in local currency).
We saw excellent growth in Ireland (annual premium equivalent up by 59% in
local currency to #27m) where our with-profit bond sales, including the
Celebration Bond product, have had continued success. In France, annual
premium equivalent grew by 13% (in local currency), reflecting strong growth
in our unit-linked product which has received a highly valued award from a
leading personal investment publication. Difficult market conditions have
caused the decline in single premium volumes in Spain.
By the end of September we had received 370,000 pension policy applications in
the privatised market in Poland and we have recognised #22m of annual premium
in respect of such business. This amount reflects the value of those policies
where pension payments have been re-directed from the State scheme. Further
annual premiums will be recognised as payments on the remaining policies are
received.
* International
In Australia third quarter sales of bonds and pensions products have
contributed to the outstanding growth of 95% (in local currency) in annual
premium equivalent to #59m. This performance has been enhanced by the
acquisitions of Portfolio Partners and Paladin.
Although not included as new business, sales of our Navigator product
surpassed all previous performances with record quarter sales of A$450m. Year
to date sales of A$1179m are up 36%, bringing total funds under administration
to A$4.3bn. Also, wholesale fund mandate sales are up 105% to A$980m,
reflecting the excellent performance of Portfolio Partners and Paladin.
Enquiries:
Analysts: Philip Scott, chief executive (UK Long-Term Savings) on 01603 683936
Tom Fraser, managing director (International) on 01603 682122
Rebecca Burrows, investor relations director on 01603 680117
Media: Andrew Stronach or James Duffell on 01603 683820
Notes to Editors:
New business figures have been translated at average exchange rates applying
for the period.
1999 1998
Australia #1 = A$2.4990 #1 = A$2.6223
France #1 = FF9.8517 #1 = FF9.9132
Ireland #1 = IR#1.1829 #1 = IR#1.1779
Poland #1 = Zloty6.2922 -
Spain #1 = Pta249.8933 #1 = Pta250.9539
Annual premium equivalent is an industry standard for calculating life,
pensions and investments new business levels. It is the total of new regular
premiums plus 10 per cent of single premiums.
Annual Premium Equivalent
9 months 9 months 9 months
to to to
30.9.99 30.9.98 30.9.98
#m #m #m
(at 1999
Exchange
Rates)
United Kingdom
Regular 105.0 92.0 92.0
Single 169.3 109.5 109.5
----- ---------------
274.3 201.5 201.5
----- ---------------
Europe (excluding UK)
Regular 70.0 41.0 42.0
Single 24.2 18.2 18.1
----- ---------------
94.2 59.2 60.1
----- ---------------
International
Regular 16.0 11.0 10.0
Single 19.3 14.1 13.5
----- ---------------
35.3 25.1 23.5
----- ---------------
===== ===============
Total life and pensions 403.8 285.8 285.1
===== ===============
Unit trusts, Oeics, Peps and
Isas
United Kingdom 17.5 5.8 5.8
Europe 0.1 0.4 0.4
International 28.7 8.7 8.3
===== ===============
Total long-term savings 450.1 300.7 299.6
===== ===============
UNAUDITED
Analysis of Worldwide New Business
Regular Single
9 9 9 9
months months months months
to to to to
30.9.99 30.9.98 30.9.99 30.9.98
#m #m #m #m
United Kingdom
Life
Unitised with-profit and unit- 12 9 669 243
linked
Non-profit 21 15 18 3
------------------------------
33 24 687 246
------------------------------
Personal Pensions
Conventional with-profit 2 3 20 27
Unitised with-profit and unit- 18 18 240 214
linked - individual
Unitised with-profit and unit- 29 24 17 19
linked - group
Non-profit - 1 1 1
------------------------------
49 46 278 261
------------------------------
Group Pensions
Conventional with-profit 7 6 3 5
Unitised with-profit and unit-linked 11 11 100 65
Non-profit 2 2 - -
------------------------------
20 19 103 70
------------------------------
Annuities - - 585 518
Other 3 3 40 -
==============================
105 92 1,693 1,095
==============================
Europe (excluding UK)
Ireland 15 13 123 52
France 22 20 100 82
Spain 7 6 15 44
Poland 22 - - -
Other European Union 4 3 4 3
==============================
70 42 242 181
==============================
International
Australia 12 7 187 131
Other 4 3 6 4
==============================
16 10 193 135
==============================
Total life and pensions 191 144 2,128 1,411
Unit trusts and Oeics - UK 1 - 36 28
- Europe - - 1 4
- International - - 287 83
Personal Equity Plans and Isas 9 - 39 30
==============================
Total long-term savings 201 144 2,491 1,556
==============================
Analysis of UK long-term savings sales by distribution channel
IFA - life and pensions products 88 85 1,600 1,065
- investment products 4 - 50 34
Direct - life and pensions products 17 7 93 30
- investment products 6 - 25 24
==============================
Total 115 92 1,768 1,153
==============================
UK unitised with-profit and unit-linked pension single premiums shown above
include DSS rebates of #48m (1998: #74m) of which #nil (1998: #60m) is an
accrual in respect of delayed payments due from the Contributions Agency.
New business premiums from Europe and International businesses have been
translated at the average exchange rates applying for the period. The impact
of exchange rate movements in 1999 results in the restatement of the 1998
total single premiums from #1556m to #1567m. Exchange rate movements do not
affect the 1998 total regular premiums of #144m.
END
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