Reliance Mutual says its business plan of acquiring other firms helped boost assets 30% last year.
The value of assets at the firm, which made two acquisitions in 2007, grew from £1.3bn in 2006 to £1.7bn last year and is up three-fold since the start of its acquisition programme in 2003, when assets were £491m.
In 2007 Reliance Mutual bought University Life, a subsidiary of Equitable Life Assurance Society, and Hearts of Oak Insurance Company, formerly Hearts of Oak Friendly Society.
In addition, Reliance Mutual says new business premiums are marginally up but adds this is not the “prime financial indicator” of the Group’s performance.
Mark Goodale, chief executive, says: “Our strategy is focused on the acquisition of blocks of policies closed to new business and the sale of niche products through IFAs and other business partners.
“2007 has been a particularly successful year, with acquisitions dominating our activities. New business premiums increased marginally during 2007.
“Unlike many life assurers, new business is not the prime financial indicator of the Group’s performance but nevertheless, this was a good result, given our focus on acquisitions during the year.”
Goodale says the firm’s latest tables of with-profit endowment payouts prove it continues to deliver excellent value to its with-profit policyholders.
“We also need to ensure we are financially strong, and 2007 has been another year of strong performance in solvency terms, with the Fund for Future Appropriations growing 6% to £122m,” he says.
“Looking ahead, our priorities are to complete the post transfer work from the Hearts of Oak acquisition, complete the acquisition recently announced of an additional block of business from Family Assurance scheduled for 31 July, and to expand sales of our highly competitive smoker annuity and develop distribution partnership agreements with third parties.”
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