Utmost Group plc (“UGP”) has delivered a strong financial performance in an uncertain economic environment. The Group has performed well against its KPIs and progressed against its core strategic pillars.
HY 2022 Highlights
- Resilient Financial Performance: The Group has delivered a strong financial performance in a period characterised by high inflation, weak equity markets, and rising interest rates. Assets under Administration are £57.6bn (HY 2021: £38.1bn; YE 2021: £63.7bn) and Net SII Economic Value is £1,691m (HY 2021: £1,362m; YE 2021: £2,175m) after significant dividend payments.
- Strategic initiatives included a £300m issuance of listed Restricted Tier 1 (“RT1”) loan notes, the launch of a new product for the French HNW market, the development of an Online Service Centre for our UK business as well as a targeted pay-rise to support our employees through the cost-of-living crisis.
- New Business: The Group wrote £2.2bn gross flows (HY 2021 Pro Forma: £2.4bn; FY 2021 Pro Forma: £4.8bn) and £0.7bn net flows (HY 2021 Pro Forma: £0.6bn; FY 2021 Pro Forma: £1.5bn). APE was resilient at £211m with the acquisition of Quilter International extending Utmost International’s leadership position in the international life assurance market.
- Credit Rating Upgrade: Fitch Ratings upgraded the Group’s Issuer Default Rating (“IDR”) to ‘A-’ from ‘BBB+’, with a consequent upgrade in the rating of UGP’s two public debt issuances. The upgrades are reflective of the Group’s leading market position, resilient capital and solvency positions, low leverage ratio and attractive capital generation profile.
- Quilter International Integration: Over H1 2022 the Group focused on the integration of Quilter International. The 100-day plan completed in March 2022 and secured early synergies from the acquisition which have resulted in an increase in SII EV and Own Funds. The Group remains on track to complete all integration activity within the 18–24-month timeline set out at acquisition.
Commenting on the results, Paul Thompson, Group CEO, said:
“After a year in which global markets and investor sentiment rebounded, the first six months of 2022 were marked by a very different backdrop, creating challenges for our policyholders looking to secure their financial futures. This is an environment in which our robust insurance and savings solutions can support our clients.
“I was pleased with the manner in which the Group navigated the uncertainties of H1 2022 without deviating from its long-term vision. Thanks to the hard work of our teams and their unflagging enthusiasm, the Group has delivered a solid financial performance and progressed against its core strategic pillars.”
Commenting on the results, Ian Maidens, Group CFO, said:
“Utmost Group delivered strong results for the first half of 2022, in a period in which financial markets were volatile as a result of the invasion of Ukraine by the Russian Federation which exacerbated already strong inflationary pressures in the UK, Europe and the United States.
“In the first half of the year, a key focus has been on securing synergies from the integration of the Quilter International business. The integration work is on track to complete in the 18-24-month timeline set out at completion.
“The Group has significant access to capital to support future investment in the business, and the financing of future acquisitions.
“Senior management continue to focus on the economic environment and the impact of heightened inflation. In light of the escalating cost-of-living crisis, we continue to consider our approach to pay across our regions.”
For further information, please contact:
Utmost Group plc
Anne Marie Shepherd, Head of Strategy and Corporate Affairs
Tel: +44 (0)203 861 4347 / Email: [email protected]
Temple Bar Advisory
Alex Child-Villiers / William Barker
Tel: +44 (0)20 7183 1190 / Email: [email protected]
About Utmost Group plc
Utmost Group plc is a leading provider of insurance and savings solutions. Its principal businesses are Utmost International and Utmost Life and Pensions, which together are responsible for approx. £57.6bn of primarily unit linked policyholder assets for around 550,000 customers. Utmost Group plc is subject to Group Supervision by the PRA.
About Utmost International
Utmost International is a leading provider of insurance-based wealth solutions. Utmost International operates across the UK, Europe, Latin America, Asia and the Middle East. Its solutions are based on unit linked insurance policies. Utmost International manages approx. £52bn assets under administration on behalf of 210,000 policyholders and wrote £4.8bn of new business in 2021.
About Utmost Life and Pensions
Utmost Life and Pensions is a closed UK life and pensions business focused on the acquisition of life and pension businesses in the UK. Utmost Life and Pensions manages £6bn of assets on behalf of 340,000 policyholders. Utmost Life and Pensions is authorised by the PRA and regulated by the FCA and the PRA.