AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
_06_16_2025_08_43_19_906343.jpg)
Highlights
- Life assurance protection insurance market contracted in 2020 by 12.6 per cent due to the impact of covid-19.
- The sector witnessed a contraction in its guaranteed acceptance and the underwritten segments as well.
The life assurance protection insurance market’s premiums fell by 12.6 per cent to £92.2 million in 2020, impacted by the pandemic, according to the latest report from market intelligence group Research and Market.
The guaranteed acceptance segment, which includes policies for those who are aged above 50 years, and the underwritten segments also saw a contraction, according to the report.
The market is seen increasingly becoming more concentrated as fewer players gain higher levels of market share. In 2019, insurance firm Sun Life made up about 44.6 per cent of the new guaranteed acceptance contracts sold.
Should you add these 2 blue-chip insurance stocks to your portfolio
Insurance companies have been forced to find new ways of improving their speed and efficiency of product delivery following the onset of the pandemic.
Notably, the world’s leading insurance and reinsurance marketplace Lloyd’s CEO, John Neal, recently said that while covid-19 has been seen as a systemic risk, climate change will be the ultimate systemic risk.
Mr Neal added that climate change is expected to be the single biggest opportunity the insurance market has seen thus far.
Let us take a look at 2 FTSE 100 index listed stocks in the life insurance sector and how they have performed:
- Aviva PLC (LON: AV.)
Aviva is a UK based life insurance company.
The insurance company released its Q3 2021 and YTD 2021 trading update today, stating that it is on track to have a capital return of £4 billion for the year, as about £450 million of its £750 million share repurchase programme has been completed.
The group is also said to be on track to meet its cost-savings target for the year.
The group’s savings and retirement segment saw record inflows, with its YTD 2021 net inflows rising by 21 per cent to £7.3 billion, up from £6.0 billion in YTD 2020.
Aviva’s YTD 2021 general insurance segment’s gross written premiums (GWP) increased by 5 per cent to £6.5 billion, from £6.2 billion in YTD 2020.
The increase highlighted Aviva’s strong customer retention, and its new business wins, especially across its commercial segments.
(Image source: Refinitiv)
Image description: AV share price and volume
Aviva’s shares closed at GBX 405.60, up by 2.63 per cent on 10 November, while the FTSE 100 index ended at 7,340.15, up by 0.91 per cent.
The company’s market cap stood at £15,507.04 million as of 10 November. Also, its one-year return stood at 28.56 per cent as of Wednesday.
- Prudential PLC (LON:PRU)
Prudential is another UK based multinational insurance group.
The company published the final terms for its US$1 billion subordinated notes, having an interest rate of 2.95 per cent. The fixed income debt instrument is set to mature on 3 November 2033 and is in accordance with the group’s US$ 10 billion medium-term note programme.
Some of the final terms include 1) the prohibition of sales to retail investors based in the European Economic Area and the UK, 2) stating the notes target market, which are for eligible counterparties and professional clients only and other terms.
(Image source: Refinitiv)
Image description: PRU share price and volume
Prudential’s shares closed at GBX 1,498.50, up by 1.25 per cent on 10 November, while the life insurance sectoral index ended at 8,254.11, up by 1.55 per cent.
The company’s market cap stood at £41,154.96 million as of 10 November. Also, its one-year return stood at 18.36 per cent as of Wednesday.
