PruProtect sees 40% year-on-year jump in new protection sales

PruProtect saw its new protection sales jump 40 per cent year-on-year in the second half of 2012.

The insurer has not released sales numbers broken down by product type but its combined protection sales reached £25.4m in the last six months of 2012, up from £18.1m over the same period in 2011.

The total number of policies placed on risk at the end of 2012 was roughly 136,000, up 56 per cent on the 89,000 on risk at the end of 2011.

Its annual premium equivalent – a common sales measure used by UK insurers which measures total premiums billed but not necessarily collected within a certain period – was £87.8m at the end of 2012, up from 59 per cent on the £55.3m reported at the end of 2011.

Earned premiums in the last six months of 2012 totalled £36.4m, up 69 per cent on the £21.6m in earned premiums over the same period a year earlier.

The combined pre-tax profit of PruProtect and sister firm PruHealth, the private medical insurer, was £21.7m in the last six months of 2012, up 30 per cent on the £16.7m pre-tax profit reported for the last six months of 2011. The insurers do not split they profits for each business.

PruHealth saw sales increase 47 per cent from £15m for the last six months of 2011 to £22.1m for the last six months of 2012.

PruProtect and PruHealth chief financial officer Mike Saunders says: “It is extremely pleasing to see that our dedication to the intermediary market, product innovation and rewarding loyalty in our customers through our Vitality scheme, has yielded such strong results. We look forward to continuing to deliver for our customers in 2013 and beyond.”