Utmost Group today (22 April) reported a 15% rise in operating profit to £212m amid the completion of the integration of Quilter International, in its full year results to 31 December 2023.
Value of new business rose 16% to £55m “given challenging sales conditions” while assets under administration of £62.8bn, up 4%, were “supported by positive market movements”, it said.
Utmost also highlighted the rating revision to Positive Outlook with the group’s Issuer Default Rating affirmed at ‘A-’ and the group solvency coverage ratio of 208% at 31 December 2023.
CEO Paul Thompson (pictured) said: “I am pleased with the encouraging results we have reported in a year impacted by a challenging macroeconomic environment. Our ability to deliver double-digit growth in Value of New Business and Operating Profit highlights the strength of our business model and our financial resilience.
“We continue to make good progress in enhancing our operational capabilities and, in addition to successfully completing the Quilter International integration, have expanded our product propositions and digital infrastructure to further improve our client offerings.
“Our strong client focus and commitment to ongoing enhancements in our operational delivery has enabled us to become a trusted partner to our distributors and clients. We are confident that Utmost can continue to benefit from the significant, long-term market opportunity and that we are well placed to scale the business, further establishing ourselves as a key player in the markets in which we operate.”
Utmost further reported that assets under administration increased by 4% from YE 2023, “driven by higher market values for equity type assets, partially offset by £(0.6)bn in net flows”.
Annual premium equivalent decreased by 12%, “due to lower volumes of new business in established markets offset by a strong sales performance in the Group’s growth markets”.
Value of new business increased by 16% “reflecting an improvement in margin, as management focused on preserving quality, offset in part by the reduction in the volume of new business written”.
While operating profit increased by 15% “highlighting business resilience and higher returns earned on shareholders’ assets in the higher interest rate environment”.
Net Solvency II EV increased by £150m before dividend and coupon payments “due to strong VNB and operating performance”.
UWS Client Retention of 92% continued “to reflect the long-term nature of our proposition which delivers good outcomes through market cycles”.
Utmost further said the Group maintained a strong capital position throughout 2023, with a group solvency coverage ratio of 208% at 31 December 2023 (FY 2022: 191%) and group own funds of £2,110m.
