Record Financial Results for Partners Life
Media Release July 2018
CONTINUED FOCUS ON MARKET-LEADING PRODUCTS AND EFFICIENCY LEADS TO RECORD FINANCIAL RESULTS FOR PARTNERS LIFE
UNDERLYING PROFIT UP 76%; IN-FORCE POLICIES INCREASE BY 21%; TOTAL COMPREHENSIVE INCOME UP 316%
Leading New Zealand insurer Partners Life reported a record underlying insurance profit of $22.0m for the financial year ended 31 March 2018, up 76% from $12.5m in the previous year.
The result was driven by the continued profitable growth of Partners Life’s book of in-force policies, which grew 21% to $251m following a record year of new business sales of $49m.
Total comprehensive income (as reported under International Accounting Standards) lifted 316%, to $38m from $9m. Comprehensive income is distorted by changes in economic conditions such as interest rates and inflation, making underlying insurance profit a better measure of the business’ performance.
Partners Life’s claims loss ratio was steady at 41.5%, with total claims increasing 21% to $86m in line with premium income. Operating expense growth at 15% remains well below the rate of premium and in-force book growth.
Partners Group’s total assets increased by $189m to $736m, and the life company RBNZ solvency margin rose by 49% to $110m.
Chairman Jim Minto says, “Against increasing scepticism of financial services organisations, Partners Life is focused on building a balanced organisation that builds trust by taking into account the interests of all its key stakeholders every day.
“Our customers, business partners, staff, shareholders, regulators, wider community and government all need to have confidence in what we do. We can only build that confidence by trying every day to balance those needs. Partners Life strives to be a sustainable life insurer that will meet the needs of New Zealanders for many decades to come.”
This focus is borne out in Partners Life’s achievement of a top ranking in the 2018 Lewers Life Insurance Intermediaries Survey for the eighth consecutive year; it is the only life insurer to receive a 5-star rating. Partners Life’s Net Promoter Score was 66, up again from last year’s score of 60 and the highest in its peer group.
Managing Director Naomi Ballantyne says, “Since our inception just seven years ago, we have maintained a relentless focus on closing the underinsurance gap in New Zealand by offering market-leading products and making leaps in efficiency that mean we can deliver competitive pricing to consumers and be there for them in their hour of need. Our success is proof that we are realising our aims and delivering for New Zealand consumers. We are very proud that in the past seven years, Partners Life has paid out over $278m of claims. What insurers do for people when they need it most should always be the first metric on which they are judged.”
Chief Financial Officer Sean Kam says, “I am very pleased with an exceptional result in a flat life insurance market. With the continued support from our key strategic shareholders and reinsurance syndicate, Partners Life is well capitalised to meet its customer commitments while continuing on its unprecedented growth trajectory.”
Partners Group Holdings
Limited 12 months ended 31 March 2018 12 months ended 31
March 2017 % change
New business API $49.0m $41.0m 20%
Premium revenue $206.6m $171.5m 20%
Claims expense $85.8m $71.0m 21%
Gross claims loss ratio 41.5% 41.4% -
Operating expenses $48.8m $42.3m 15%
Total comprehensive income $37.9m $9.1m 316%
Life company underlying insurance profit $22.0m $12.5m 76%
Partners Group Holdings Limited As at 31 March 2018 As at 31 March 2017 % change
Total assets $736.0m $547.6m 34%
Net assets $337.2m $223.9m 51%
Cash and investments $163.5m $109.9m 49%
Life company solvency ratio 149% 150% (1%)
Life company solvency margin $109.6m $73.5m 49%
Number of lives insured 165,000 145,000 14%
In-force annual premium $251.3m $207.0m 21%
Naomi Ballantyne says, “As a leading life insurer, the wellbeing of our customers and the New Zealand public is important to us, as is contributing to education and confronting some difficult obstacles in how we deal with health and personal finance as a society.
“This year we were pleased to have the opportunity to be principal partner for the educational exhibition Body Worlds Vital. The exhibition was designed to help Kiwis learn about the physiological effects that various lifestyle choices can have on their bodies. Feedback from both the exhibitor and attendees has been extremely positive.
“This year also marked the tenth anniversary of the Partners Life DUAL, an off-road run and mountain bike event that raises funds for the Motutapu Restoration Trust. The Trust plants thousands of trees annually and continues to reintroduce endangered species such as kiwi and takahe onto this island sanctuary in Auckland’s Hauraki Gulf.”
Partners Life was a top 10 finalist in the Medium-Large category in the 2017 IBM Best Workplace Survey, and engaged with Diversitas to measure diversity and inclusion within its workplace, achieving an overall score for inclusive culture of 8.5 out of 10. This score is one of the highest that Diversitas had seen among its New Zealand clients.