1 March 2007
• Sharp growth in new insured pension business (full year to December 31 2006)
• Individual pensions up 122% to £1.59 bn Single Premium Equivalent (SPE)
• Total assets under management increased to £10.43 bn
• Strong service and distinct A-Day platform prompt rise in sales
March 1 2007: Winterthur Life today reported a sharp increase in full year individual insured pensions business up 122% to £1.59 billion SPE (2005: £640 million) reflecting the continued strong progress of its predominantly single premium proposition. The company also reports a rise in assets under management to £10.43 billion, as at December 31 2006, up from £9.0 billion 2005.
AXA Wealth Management and Winterthur CEO Mike Kellard says the company’s strong focus on the high net worth market and its distinction in being one of the few companies to have its A-Day IT and product platform ready for business on April 6 2006, contributed significantly to the sharp rise in sales in 2006.
“Against the backdrop of growing numbers of high net worth individuals and Winterthur’s A-Day ready product suite developed to meet their distinct needs, Winterthur has enjoyed a very strong 2006. Individual pensions growth overall was 122 per cent for the year, and the company enjoyed a leading industry position in quarters three and four for new business levels. Winterthur is therefore positioned strongly to take advantage of the business opportunities available from quality advisers who support the growing high net worth population.”
In the UK pensions segment:
• Single premium Personal Pensions up 148% to £761 million (2005: £307 mn)
• Income Withdrawal up 303% to £348 million (2005: £86 mn)
• Single Premium Individual Section 32 up 221% to £85 million (2005: £26 mn)
• Annual Premium Personal Pensions up 177% to £12.8million (2005: £4.6 mn)
In the UK investments segment:
• New investment bond new business grew 48% to £104 million (2005: £70 mn).
Kellard adds that Winterthur has long developed its proposition to support the evolving needs of top end advisers who demand strong service, quality investment and pension products and innovative solutions to help meet the sophisticated needs of their clients.
“In 2006 Winterthur further developed its suite of online client management services, added new adviser training and education programmes to its Professional Edge range of adviser services and successfully brought its pre-A-Day platform down at midnight on April 5 2006 and opened for business on April 6 with its new A-Day ready product suite – one of the very few companies to achieve this.
“Winterthur also grew its sales team and associated support staff to allow Winterthur to provide greater support to the specialist adviser community. Together these initiatives have reinforced Winterthur’s specialist credentials and cemented the company’s reputation as the leading provider of focused investment and retirement solutions and support services predominantly distributed through quality IFAs to HNW individuals,” concludes Kellard.
Paul Evans, CEO, AXA Life, said: “These excellent new business figures underline the strong position Winterthur Life has built in the high net worth market and further emphasise Winterthur's value to AXA. We intend to continue with our strategy of maintaining the Winterthur wealth management brand and its distinctive, highly successful proposition in the UK.”
-End-
For further information:
Paul Riddell Winterthur Life, Press Office +44 (0)1256 798099
Sandra Fulton Winterthur Life, Press Office +44 (0)1256 798310
Christine Wood Financial Dynamics +44 (0)20 7269 7253
Notes to Editors
UK pension and investment business
Winterthur Life’s pensions business is predominately single premium (99% based on new business received). The company’s YTD new insured single premium individual pensions - up 122% to £1.59 billion SPE. The company targets chiefly single premium business where returns are better than the higher volume but more competitive regular premium market. We saw strong growth in particular in single premium individual personal pensions and income withdrawal sales post A-Day, while sales of Sipps grew moderately partly because of a highly competitive market place. The moderate increase was also owed to the successful launch of Winterthur’s personal pension on A-Day, which has a fast track facility to allow easy-switch to self-investment when the client is ready.
Total new pensions business, including Group pensions, was up 44% to £2.5 bn Single Premium Equivalent (SPE) for full year to December 31 2006.
Our two-product platform has enabled the system changes required ahead of A-Day to be delivered more easily, which will help us to maintain our strong service proposition and focus on gaining profitable market share. It has also enabled Winterthur to continue to offer a clean and transparent product offering, only charging for services/ products clients need.
New Investment Bond business grew reflecting growing consumer confidence after strong investment market performance. We continue to enhance our Tailored Selection range of investment funds and expect our sales to reflect market trends.
Outlook
Demographic changes in the population will see an increase in the number of people in retirement. There will also be an increase in the number of people inheriting wealth with a greater need for financial advice. There is also an increasing need for more investment options that are more tailored to the individuals’ circumstances to provide a more holistic approach to retirement planning. Winterthur is positioned strongly to benefit from this socio-demographic shift.
About Winterthur Life UK Limited
Winterthur Life UK Limited is part of AXA Group, one of the largest financial institutions in the world.
Winterthur Life UK is a provider of focused investment and retirement solutions and support services predominantly distributed through quality IFAs to their high net worth clients.
The company is recognised as having an innovative approach to financial products and its products feature simple, transparent charging with access to a wide range of carefully selected investment funds and fund managers via its Tailored Selection fund platform. Winterthur is also differentiated in the market through its focus on service excellence.
Winterthur Life UK Limited has a B+ financial strength rating from AKG, which denotes “very good financial strength”. At the end of 2006 Winterthur had assets under management exceeding £10 billion, and grew its new insured individual pensions business by 122% to £1.59 billion.
Winterthur Life UK Limited is authorised and regulated by the Financial Services Authority.
Any opinions expressed in this media communication are made as at the date of publication but are subject to change without notice. Past performance is not a guide to the future. The value of shares/units and the income from them can go down as well as up. Exchange rate fluctuations may cause the value of underlying investments to fall as well as rise. Yields are not guaranteed and may fall or rise.
www.winterthur-ifa.co.uk
