CBI reports strong growth for life insurers
The latest CBI/PwC Financial Services Survey has reported that activity in the UK financial service sector has been broadly stable over the past three months, and somewhat better than expected.
According to the study, which is published by the Confederation of British Industry, life insurance companies have seen business volumes rise at the joint fastest pace on record, marking the first growth since September 2007.
Along with a sharp rise in fee, commission and premium income, this led to the first rise in profitability since December 2007, with a similar increase anticipated in the next three months.
The report also highlights the fact that life insurers are increasingly looking into new products and international markets to generate further growth.
For general insurers the picture is not so bright – they experienced a sharp decline in business volumes, income values and profitability in the three months to March.
According to the survey, there were particularly strong declines in volumes of business with private individuals and commercial customers, although employment levels among general insurers managed a slight rise, despite the downturn.
Turning to insurance brokers, profitability rose for the fifth consecutive quarter, but at a markedly slower rate than had been expected.
However, there was a rapid increase in numbers employed, and a further, faster increase is expected in the next three months.
PricewaterhouseCoopers’ UK insurance leader, Andrew Kail, says: “Non-life insurers’ run of confidence that began at the end of 2008 would appear to have come to an end.”
He adds: “Life insurers experienced a welcome uptick in business activity and premium income … however, it remains to be seen whether this recovery will be sustained and the sector is not throwing caution to the wind yet.”
Category: Employment News, Financials, Insurance News, Life Insurance News
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