Zurich’s UK Life business has reported a 9 per cent increase in operating profit, from £171m in 2011 to £186m last year, following a significant cost-cutting drive.
The value of the new business written buy Zurich in 2012 increased 28 per cent to £123m, compared with £96m in 2011.
However, total sales measured on an annual premium equivalent dropped 2 per cent, from £769m to £754m, as the provider battled “tough” conditions in the retail investment market.
Zurich UK Life chief executive Gary Shaughnessy says the company’s focus on “expense management” helped boost its profit margins during the year. In September, the provider announced 200 job cuts as part of a restructure of its operations ahead of the retail distribution review.
Shaughnessy says: “We have seen the continuing benefits of our strategy of focusing on expense management whilst at the same time adapting our propositions and business model to meet the changing demands of the UK market.
“Both retail and corporate markets are undergoing a substantial change through auto-enrolment and the retail distribution review, and we have a business model that recognises that.
“Our business is also strengthened by our exceptionally high quality partnerships and a focus on corporate and retail intermediaries. Building on these strong partnerships remains a key priority for us.”
Zurich does not publish a break down of its UK results. This article is based on selected information provided to journalists by Zurich.