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Fortis Life celebrates a very successful first year of trading

9th July 2009

Fortis delivers on its promises to the market

Fortis Life announces a very successful first year of trading, in what has been a challenging time for the industry and a significant period of change for Fortis.

Key highlights include:

• Launched on 8 July 2008 with YourLife Plan and Real Life Cover.
  
  
• Launched new online 'no frills' protection product with Click in October 2008.
  
  
• Attained a market share of 3 per cent of the IFA Whole of Market (at first quarter 2009) with significant further growth expected across the rest of 2009.
  
  
• Receiving more than 500 applications per day and provide cover to 38,500 customers.
  
  
• Delivery of market-leading straight-through processing rates with immediate decisions now given in 60 per cent of cases.
  
  
• Significant industry recognition including Protection Review, FTRC and Defaqto.
  
  
• Opened new office in Reigate and have grown to over 100 staff.
  
  

A year ago, Fortis entered the life protection market with three main promises

• Innovative systems and processes that empower advisers by placing them in control of their business and making the whole process, from quoting to on-risk, quicker and simpler.
  
  
• Two new protection products - YourLife Plan and Real Life Cover - that effectively meet customer needs and help to improve consumer confidence.
  
  
• Work in partnership with its distributors to deliver improved efficiency and products that resonated with their customers.
  
  

Fortis has delivered on all three promises.

Over the past 12 months, Fortis' unique and dynamic approach to underwriting, including a signature free process, no automatic requirement for GP reports and no ongoing duty of disclosure, has resulted in the delivery of immediate decisions in 60 per cent of cases. As a result, Fortis is leading the market in terms of straight-through processing and has attained a market share of 3 per cent of the IFA Whole of Market (at first quarter 2009)* with a number of specialist protection distributors who have recognised the dramatic improvement in conversion rates and cash-flow that efficient processes can make to their businesses. Fortis' systems capability has been widely recognised and secured the highest 'eee' ratings from The Financial Technology and Research Centre for Term Assurance, Critical Illness, Income Protection and for its Menu offering. Fortis was also named 'Best Protection Newcomer'. Only two other insurers have achieved 'eee' ratings for four products.

Mike Cooke, Partner of The Money Helper, commented:

"Quite simply, Fortis has transformed our business. We get immediate decisions in about 70 per cent of the cases we submit to them which means we stay in control of the case from talking to the customer right through to going on risk. And of course the immediate decisions mean quicker commission payments which has really helped our cashflow."

Fortis is challenging the market to think differently about real customer needs and tailoring products to suit those requirements, with the aim of building customer confidence and trust and thereby closing the protection gap. Fortis' competitively priced menu plans offer unique features including terminal illness cover that pays out even in the final year of the plan and a temporary disability rider to Critical Illness that recognises one of the key issues with TPD identified in the latest ABI consultation paper by paying an income to customers whose disability is diagnosed as total but not permanent. The products have been well received across the market and have been recognised with numerous accolades and awards. YourLife Plan Critical Illness and Income Protection products received 5 star ratings from DeFaqto, while Real Life Cover was recently named 'Innovation of the Year' by a group of key industry figures at the Protection Review. Most importantly Fortis is now receiving over 500 applications per day and provides cover for 38,500 customers across the UK.

Fortis' commitment to listen to customers and to work in partnership with distributors has been demonstrated by the development of Real Life Cover - developed in conjunction with LifeSearch, and Click Life Cover - designed specifically to suit Click's business.

Overall Fortis is delighted with the progress it has made in its first year and looks forward to continuing to deliver in its second full year in the market.

Martin Werth, Managing Director of Fortis Life, said:

"We are committed to making a real difference in the life protection market for our distribution partners and customers, and are proud of what we've achieved in our first year. We entered the market with a fresh approach to protection and have tried to clear away 200 years of cobwebs that immerse our competitors. Looking forward to the rest of 2009 and beyond we will continue with our distribution roll-out and further improve our e-business delivery, so that distributors working with us can be more confident in their customer service and build more profitable businesses."

Notes to editors

*Source: ABI New Business Figures Q1 2009

To hear what Fortis' partners have to say about the business, contact:

Ray Flannery
Click Financial Ltd UK, T: 07815 139023, E: ray.flannery@click.co.uk

Alan Lakey
Highclere Financial Services, T: 01442 234800, E: alan.lakey@btconnect.com

Press Contacts:

Fortis Press Office, Tel: 023 8035 2754, E: press.uk@fortis-uk.com