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Insurance industry

Norwich Union Reports Stronger-Than-Expected Sales for 1998

Strategic Insights

— 1 min read

Norwich Union, a UK-based insurer, has announced an 8% increase in UK new business sales for 1998, reaching £283m. This strong performance was driven by a surge in group personal pension and investment bond product sales, as well as a 18% rise in regular premium sales to £126m. The company's shares rose 4% to 486 1/2p on the news, with the CEO, Richard Harvey, describing the full-year figures as "encouraging" despite a slowing economy and volatile stock markets.

Key Takeaways:

  • UK new business sales rose 8% to £283m in 1998, with a strong fourth quarter performance.
  • Group personal pension and investment bond product sales showed increased momentum in the fourth quarter.
  • Regular premium sales increased 18% to £126m in 1998, while single premium sales rose 2% to £1.49bn.
  • Worldwide new business climbed 4% to £421m, with European business rising 9% in local currency terms.
  • Norwich Union forecasts market growth of 5-10% this year, with growth in pension sales potentially curbed by regulatory issues and economic slowdown.
  • The company's TV advertising campaign could impact sales, but the CEO is optimistic about the impact of falling interest rates on long-term investment product sales.

Statistics:

  • £283m: UK new business sales in 1998, an 8% increase from the previous year.
  • £126m: Regular premium sales in 1998, an 18% increase from the previous year.
  • £1.49bn: Single premium sales in 1998, a 2% increase from the previous year.
  • £421m: Worldwide new business sales in 1998, a 4% increase from the previous year.
  • 9%: Increase in European business sales in local currency terms in 1998.
  • 5-10%: Forecast market growth for Norwich Union in 1999.

Sources:

  • "Norwich Union yesterday unveiled stronger-than-expected sales for 1998." (Source not specified)
  • "The increase, based on regular premiums, 10 per cent of single premiums, and investment business, helped the shares rise 4 per cent to 486 1/2p." (Source not specified)
  • A statement from Philip Scott, director of life and pensions, quoted in the article.

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