Pruprotect set for growth; Pruhealth likey to fall

Pruprotect looks set to reveal a substantial gain in its new business for last year but its stable mate Pruhealth appears to have suffered a tougher 12 months.

Both insurers are a recent joint venture into the UK protection and health insurance markets by British based Prudential, and South African provider Discovery.

And it was the South African company who released the data for July to December last year alongside an interim report for its home market.

Pruprotect, which was formed in late 2007, saw its new business for the six months increase 245% while five year old Pruhealth's fell 39%.

The protection company's operation grew from R29m (approx £2.47m) to R100m (£8.52m), while the health side fell to R165m (£14.07m) from R271m (£23.11m).

Due to variations in accounting systems between the two countries, these figures may differ slightly when the full end of year results are released.

Adrian Gore, CEO at Discovery, noted that Pruprotect's growth had exceeded predictions.

"The quality of new business exceeded expectation with average premiums and the take-up of additional benefits higher than expected," he said.

"While still too early to gauge, lapse rates and claims levels are better than expected."

Gore also sought to explain Pruhealth's fall, which he said, "reflected the negative effects of the economy, in addition to the expected increased claims levels during recessionary periods."

"It has, however, made good progress with lives covered growing by 15% to 219,000," he added.

Gore believes the restructuring that Pruprotect and Pruhealth have gone through this year, bringing them closer to Discovery's model in South Africa will see them grow in the future.