The integration of Quilter International has "progressed well, with a number of workstreams complete and the remainder on-track against the initial plan", Utmost Group said in its results for the year to 31 December 2022.
The portfolio transfers in Ireland and in the Isle of Man were implemented in October 2022 and November 2022 respectively, enabling the Group to maintain a single insurance entity in each jurisdiction, in line with its strategic vision, Utmost reported.
"The activity to rebrand the Quilter International business to Utmost International completed in October 2022. All our International activity is now operated under the Utmost brand."
Paul Thompson, Group CEO, said: "The Group performed strongly in 2022 despite the difficult macroeconomic environment and volatile investment markets. Financial performance was strong and new business was resilient against a difficult backdrop.
"I am pleased with the progress made on the integration programme in 2022. The programme has progressed well, with a number of workstreams complete and the remainder on-track against our initial plan.
"Longer-term sectoral trends are supportive of our continued business growth, with increasing demand for robust, transparent investment and savings products. Utmost Group remains well placed to capitalise on our existing strong market position and foresees continued opportunities for acquisition-led growth."
Annual Premium Equivalent (APE) was £397m in 2022 compared to £484m in 2021 on a pro forma basis. Utmost Wealth Solutions generated £393m and Utmost Corporate Solutions, its employee benefits business, generated £4m of APE.
Utmost International's new business figures "reflect the lower volume of new business in our established markets, offset by strong sales performance in our growth markets in Europe and Asia", it said.
Net flows for the year were £1.3bn, comparable to the £1.5bn pro forma figure in 2021, supported by high client retention rates.
Value of New Business (VNB) was £48m in 2022, compared to the pro forma 2021 figure of £66m.
"The reduction in VNB relative to the pro forma 2021 figure reflects the reduction in APE and changes in the mix of business written", it said.
Assets under Administration (AUA) was £58.4bn at YE 2022, decreasing by 8% from £63.7bn at YE 2021.
"AUA decreased in the period due to adverse market movements, leading to lower market values for all asset classes. Strong net flows in the year as a result of improved client retention rates partially offset the negative impact of market movements", it said.
Operating Profit (OP) was £224m in 2022 compared to the 2021 pro forma figure of £220m.
"The increase in operating profit compared to the pro forma 2021 outcome reflects lower operating expenses offset partially by lower charges received as a result of the declines in the value of unit funds", it said.
Solvency II Economic Value (net SII EV) of £1,770m at YE 2022 decreased by £405m from the £2,175m at the end of 2021, "primarily as a result of the payment of £500m in dividends. Adjusted for dividends, the Group achieved an increase in Net SII EV of £95m as
VNB and operational improvements overcame the impact of adverse market movements".
UWS client retention was 94% in 2022 (2021: 93%) on the revised basis: "High retention rates reflect good client servicing and the long-term nature of our proposition which delivers good outcomes through market cycles", it said.
In further highlights, Utmost said the Group's balance sheet is strong and resilient with Own Funds of £1,900m (YE 2021: £1,964m) and a Solvency Coverage Ratio of 191% (YE 2021: 177%), "enabling us to provide a high level of security to our clients".
The Group issued £300m listed Restricted Tier 1 notes in January 2022 at a coupon of 6.125%
In June 2022, Fitch Ratings upgraded the Group's Issuer Default Rating to ‘A-‘ from ‘BBB+'. The Group's Tier 2 ("T2") notes were upgraded to ‘BBB-‘ from ‘BB+' and its RT1 notes were upgraded to ‘BB+' from ‘BB'
"The upgrade reflects the credit strengths of the Group including its prudent capital structure. At YE 2022, Gross Solvency II Economic Value ("SII EV") leverage ratio was 28% and Fitch Financial Leverage Ratio ("FLR") was 23%, post the £500m dividend paid by UGP to its shareholder during 2022."
The Group also said it is investing in upgrading its core technology platforms. "Our core policy administration systems in the Isle of Man and Ireland are being enhanced and updated to ensure that they remain robust and scalable".
During the year, Utmost Life and Pensions new Online Service Centre, MyUtmost, was launched. "The platform enables customers to view policy values, communicate and transact online. The platform has been well received and is delivering efficiencies to both our policyholders, their advisers and to the Group".
In April 2022, Utmost International launched a product tailored for the sophisticated financial planning needs of French HNW and UHNW individuals following the launch of its expatriate product in October 2021 and "demonstrates the strong commitment of Utmost International to the French market, a key strategic market for insurance-based wealth solutions".
