Life insurance provider Utmost Group has reported a 22% increase in assets under administration (AuA) during its 2020 end of year results.
AuA came in at £36.7bn ($52.1m, €42.7m) for the period ending 31 December 2020, compared to £30.1bn at the end of 2019.
The firm said this is a “result of the Equitable Life acquisition and a strong market performance despite the volatility of Q1 2020”.
New business weighed in at £30m, an increase of 7% compared to 2019, which was £28m. Operating profit dipped slightly at £85m in 2020, compared to £87m in 2019.
In October 2020, the group united Utmost International (UI) and Utmost Life and Pensions (ULP) under a single UK holding company, Utmost Group.
Quilter International acquisition
The 2020 financial results were not impacted by the group’s acquisition of Quilter International, which was announced in April 2021.
The deal is subject to regulatory approval and will see Quilter receive roughly £483m in cash assuming completion on 31 December 2021.
The plan is to fold Quilter International into Utmost International, to which it will add £22bn of AuA and 90,000 life policies.
The firm said about future acquisition ambitions: “We expect the pace of M&A activity to increase as a result of covid-19, as insurance companies look to free up capital by divesting non-core and closed businesses and reduce their balance sheet risk.
“The operating and regulatory environment creates high barriers to entry in the insurance consolidation space. Utmost Group is well positioned with shareholder support, experience completing complex transactions and ready access to capital to continue with its acquisition strategy.”
‘Developing our business’
Paul Thompson, group chief executive of Utmost Group, said: “The pandemic has swept the world and introduced considerable uncertainty, but our teams have risen to the challenge, demonstrating their commitment and resolve.
“As our results for 2020 demonstrate, our strong values, adaptability and continued focus on our long-term vision have sustained our momentum. We anticipate the year ahead will be a period of growth, and our group is ready.
“Our people have worked commendably in trying circumstances. They have demonstrated the values of the group and I would like to thank them for their dedication and commitment.
“As a result of their motivation, attention to detail and collaborative spirit, the group entered 2021 with the confidence to pursue a significant acquisition in Quilter International.
“Our ambitions are considerable, and we will continue to pursue our strategy focused on developing our businesses. Driven by the agility of our teams, their entrepreneurial spirit and building on our momentum, Utmost Group enters 2021 with cautious confidence and ready to forge ahead.”
