Protection  

Vitality profits rise

Vitality profits rise

Working with advisers has been part of the success Vitality has seen in the 12 months, since the Discovery acquisition, Neville Koopowitz has said.

“The past year has seen us develop innovative products, bring on partners that can offer more compelling rewards to our members, and raise awareness of our brand with consumers and advisers,” the VitalityHealth chief executive said.

Vitality announced a 16 per cent profit to £42.8m across its two brands - VitalityHealth and VitalityLife - in the first year since it acquired the remainder of the business from Prudential last November.

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According to its results, the combined UK business now covers 867,000 customers – an increase of 15 per cent, with overall premiums/revenue up by 11 per cent to £533m.

However combined new business sales were down 2 per cent to £105m.

Mr Koopowitz, and VitalityLife chief executive Hershel Mayers, said other factors included the launch of LifeStyleCare, a flexible life policy for people who fall ill in late life and its Vitality Optimiser business, which integrated life insurance and benefits.

Mr Mayers said: “VitalityLife is now the second largest life provider in the IFA space. With 55 per cent of new business, we are proving that we provide better outcomes for customers and deliver a new category of life insurance.”

Background

In November 2014, Discovery acquired the remaining 25 per cent stake in Prudential Health Holdings for £155m, after it had increased its shareholding in 2010 to 75 per cent.

The acquisition was part of Discovery’s strategy to have the UK as its second home market.

PruHealth and PruProtect were merged into the Vitality brand - VitalityHealth for private medical insurance and VitalityLife for protection insurance.