Engage Mutual has reported a fall in total new business sales and premiums but is ‘upbeat' about its life insurance and health growth, according to its H1 2013 results.
New business sales of £2.7m and total premiums of £28.6m are down on the prior year (half year 2012: £2.9m and £29.8m respectively).
Sales continued to be dominated by over 50s life insurance, which increased by 7% year on year to £1.8m.
Health sales continued to increase, up 14% year on year to £0.4m. As expected, profits sales roughly halved, to £0.3m.
The decline in total premiums is in line with sector performance and driven by historical savings products, most notably unit-linked savings where premiums reduced by £1.1m to £3.5m, the provider said.
In contrast, the mutual achieved year on year growth in its key strategic products, with over 50s life insurance premiums increasing by 2% to £12.4m and health premiums increasing by 5% to £3.7m.
Claims statistics have shown £20.5m was paid out in life insurance and health claims (half year 2012: £22.7m) and £21.7m in savings and investment plan payouts (half year 2012: £27.1m).
Peter Burrows, chief executive at Engage Mutual (pictured) said: "Our overall performance is in line with our expectations. Importantly, as we begin to refocus our business, we are continuing to see growth in our core strategic products."
Meanwhile, the mutual's balance sheet was strong with capital strength remaining in excess of three times the required regulatory level. Total assets were stable at £937m (full year 2012: £931m).
Burrows added: "It's our customers' money, and the continued strength of their business means that as we put together our future plans, we can begin to act more ambitiously and make additional wider benefits available to customers.
"We will be road-testing our ideas in customer forums during October, following which I expect to be able to announce some exciting plans."
