CBI: life insurers lead the way in volume and profit
A Confederation of British Industry (CBI) / PricewaterhouseCoopers survey published today revels that UK financial services grew in the three months to June 2010, at the fastest rate since September 2007.
Life insurers saw “healthy increases” in volumes, and profitability grew strongly for the second successive quarter.
General insurers’ volumes were largely flat and overall profitability fell for a third quarter in a row, with another fall anticipated in the three months ahead.
Insurance brokers saw volumes grow for the first time since March 2009, although profitability fell slightly as fee / commission income values declined.
A further fall in profitability is expected in the next three months.
Despite a strong rate of growth in the past three months, the CBI describes the rate of progress in the financial services sector overall as “much lower than expected” with firms still considering levels of business to be “well below normal”.
Asked how their business volumes fared in the three months to June 2010, 38% of respondents said that volumes rose and 29% said they fell.
The resulting balance of +9% is the most positive since September 2007, but was far weaker than expected.
In addition, concerns about the impact of regulation and legislation on future business remained high.
PwC UK insurance leader, Andrew Kail, says: “As plans for domestic growth remain weak, many insurers will be looking to international markets to drive growth during the year ahead”.
Category: Employment News, Financials, Insurance News, Life Insurance News
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