Vitality UK has reported an increase in profits and new business, bolstering its wider parent company’s growth.
Discovery Group, the South African-founded financial services organisation, released its annual financial results for year ending 30 June today (10 September), in which it attributed a strong global performance to key contributions from its UK business.
Combined new business across VitalityHealth and VitalityLife increased by 12 per cent to £132m and operating profit grew by 44 per cent to £64m, compared with the previous year’s figures.
In its report, the company attributed the launch of VitalityInvest, the insurer’s range of investment products, earlier this year to creating a "considerable opportunity" for continued growth in the market.
The insurer stated in its results that VitalityLife had "completely re-engineered" itself for the UK’s low interest environment, with a strong sales performance in the second half of the year.
Global financial figures for Discovery Group saw a 17 per cent growth in operating profit to £477m as new business rose by 10 per cent to £931m.
Neville Koopowitz, chief executive at Vitality UK, said: "This financial year has marked a number of key milestones, including the business reaching a million lives and the launch of a new business in VitalityInvest.
"Over the next financial year we will be continuing to innovate to provide new exciting products which make a positive impact on our members’ lives, underpinned by robust financial performance – thus achieving our goal of delivering shared value to clients, ourselves and society."
Adrian Gore, chief executive at Discovery Group, said the group’s business model was more relevant than ever.
He said: "Financial services businesses have to fulfil a societal function, technology will continue to play an increasingly significant role, and there is a greater realisation that insurance risk is strongly associated with behaviour, be it your health or financial security.
"The impressive growth and performance of the VitalityHealth and VitalityLife businesses have underlined the particular resonance of the model in the UK market."
Alan Knowles, managing director at Cura Financial Services, commended Discovery's commitment to the UK market through their Vitality brands.
He said: "It is no surprise, from their advertising and unwavering approach to promote healthy living alongside financial services, that the group are reporting growth - discovery has a great message and a unique proposition that appeals to many people, they continue to grow and diversify without compromising their core beliefs."