Annual Report 2009

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Looking back on 2009 I take great pride in what our Company has achieved throughout what has been an incredibly challenging year for our industry.

The recession has had a widespread effect on businesses throughout the UK, and whilst we have not been immune to this, I am pleased to say that our business is resilient and we continue to be in a strong financial position.

Decreasing employment levels, combined with businesses examining their costs and reviewing their employee benefits packages, have together exerted downward pressure on our premium income from existing customers. Despite this, many companies continue to see the value that financial protection can bring to their organisation and a concerted effort from our sales professionals has driven an 18.4% increase in Group business sales compared to our 2008 results.

Overall, our business performed well throughout 2009 and we have retained our leadership position in the Group Risk market in providing financial protection and offering support and stability to individuals and families affected by life changing events. In 2009 we were pleased to pay in excess of £5 million a week in benefits to our customers.

Of course, sustainable growth demands business agility, and we are firmly focused on making sure we are doing everything we can to create an operating framework that is able to quickly and dynamically respond to changing business needs.

At a time of unprecedented environmental change, we believe our philosophy of looking ahead to the future needs of our customers can bring with it great value for our customers. We are investing in new products and services and are working closely with our parent to leverage our enterprise-wide capabilities including technology, business processes and specialist expertise.

The changes we have witnessed in the political landscape during 2009, and that seem set to continue in 2010, have seen Government resources starting to diminish, reducing the ‘State safety net’ and making companies and individuals more responsible than ever before for their own personal and financial protection.

Serious illness, injury or untimely death can have devastating consequences on an individual, their family and the lifestyle that they have worked so hard at creating. We are uniquely positioned to help alleviate the financial and social pressures this creates. However, there is much more we need to do to create greater awareness amongst the wider workforce about the value and importance of financial protection, as well as talking to employers about how valuable financial protection products can be in safeguarding their workforces.

Download full Annual Report 2009 (PDF - 2MB)