Wesleyan has announced its results for the year ended 31st December 2022.
Despite the economic uncertainty of 2022, the Wesleyan Group demonstrated growth on the previous year with an increase in operating profit to £7.2m. It also recorded positive net inflows, the excess of premiums over claims, with Group premium income at a record high of £540m. Further progress was made against Wesleyan’s strategic plans to enhance the sustainability of its business.
The Group demonstrated its commitment to mutuality and its specialist customer base by investing almost £5m (2021: £3.8m) in programmes designed to benefit members. This included £1m in donations through its charitable Foundation, supporting good causes linked to its professional customers and local communities.
- The Society made an operating profit* of £7.2m (2021: £6.1m) from new business volumes and a strong focus on cost control, despite inflationary pressures.
- Positive net inflows, the excess of premiums over claims, led to Group premium income at a record high of £540m (2021: £515m).
- The Group retained its capital strength with Solvency Ratio increasing to 373% (2021: 306%).
- Group assets under management fell to £7.2bn (2021: £8.5bn) mainly due to turbulent economic conditions.
- Progress made against strategy included completing the sale of Wesleyan Bank and steady growth in sales of With Profits products via direct and intermediary channels.
- Income and cost benefits were realised as a result of transformation activity reflecting Wesleyan’s commitment to building a stronger, more sustainable business.
- Wesleyan subsidiary Practice Plan Group saw continued growth in patient numbers with over 1.1 million now on plan.
Wesleyan remains committed to its mutual status and was able to deliver benefits to members and communities in 2022 despite the challenging operating environment. These included:
- £2.5m (2021: £2.5m) financial contribution made to provide discounts to its members on selected insurance policies.
- £1m (2021: £1m) donated to good causes taking the amount donated by Wesleyan Foundation to £5m since it was launched in 2017.
- £98K on a new Member Reward programme launched during 2022 offering annual benefits, including retail vouchers and cashback options.
- 96% (2021: 98%) of personal income protection claims paid compared to an industry average of 86%**.
Mario Mazzocchi, Wesleyan Group Chief Executive, said: “2022 was another challenging year with unexpected geopolitical and economic events creating a difficult operating environment. As customers contended with the rapidly rising cost of living, we worked hard to support them with specialist financial advice as well as new propositions and resources.
"Despite the turbulent economic conditions, Wesleyan demonstrated growth on 2021 as operating profit rose and positive net inflows led to Group premium income reaching a record high. We also retained our capital strength with an increase in our solvency ratio. These results are all the more pleasing given the impact of high inflation on our operating costs.
"These results are also evidence that our strategy is working, and we are building a more resilient business. Over 2022 we embedded new income streams and more efficient ways of working, while maintaining our stringent focus on cost control. This protected us against the worst of the difficult trading conditions.
"We are continuing to implement our strategy of sustainable growth focusing on removing inefficiencies from the business so that we can build a truly modern mutual that is relevant to our customers today and in the future."
Chair Nathan Moss added: “Our members can have full confidence that our investment in building a stronger, more sustainable business is working and will deliver value for them over the long-term. We were pleased to introduce a new Member Reward programme in 2022 as part of our mutual commitment.
"We made good progress in a number of key strategic areas over the year including progressing our sustainability strategy and enhancing our culture to be more flexible, inclusive and diverse.
"Wesleyan’s performance in 2022 pays testament to the passion and commitment of our people and the Executive team who lead them. I thank them for their hard work and also our members and customers whom we are proud to serve."
* Group operating profit/loss represents profit before investment fluctuations and other accounting and tax adjustments
** Association of British Insurers (ABI); May 2022