How we performedThe 2016 financial year was the first year of full ownership of these businesses, which were previously operated in partnership with Prudential plc. in the United Kingdom (UK).
OUR PERFORMANCE IN 2016
VitalityHealth is nearing completion of a system migration that will result in a single product construct and administration platform across all legacy portfolios.
During the period, VitalityHealth exited the Transitional Services Agreement (TSA) with Standard Life for the administration of the former Standard Life Healthcare book of business. Unbudgeted costs of approximately £5 million were incurred in relation to exiting this agreement and migrating the portfolio to VitalityHealth’s administration system. The business has now started to realise the benefit of the extensive investment made following the exit from the agreement, with management expenses reducing by 4.5% in the second half of the year, and service levels and claims efficiency both improving.
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Chief Executive Officer
Chief Executive Officer
The strength and ubiquity of the National Health Service in the UK, results in a significant under-investment in health and wellness in the private sector, both at an employer level and among individual consumers.
As such, there is a need to increase public awareness of health and wellness issues, and to create greater accountability among consumers for their wellbeing. This informs Vitality’s product, brand and marketing approach – from a product perspective we inform people of their risks and reward them for making healthy choices. From a brand perspective, we have created a retail franchise around health through our sponsorship assets and marketing campaigns.
2016 STRATEGIC
OBJECTIVES
In our previous report, we outlined strategic objectives in a number of key areas. In this section we report on our progress.
During the 2016 financial year, we targeted business growth, while maintaining new business margin. We worked on developing a more sophisticated approach to pricing to improve our ability to target profitable new business segments and we introduced further innovations into our Vitality programme, with the objective of stimulating further wellness engagement and behaviour change.
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