View more on these topics

Big losses prompt Abbey Nat to split businesses

Abbey National is refocusing after its recent expansion programme to concentrate on its retail banking and onshore IFA businesses after describing its results for last year as “extremely unsatisfactory”.

The company lost £984m last year after a profit of£1.47bn in 2001. As a result, Abbey is splitting its operation into two – personal financial services taking in high-street banking and its intermediary operations.

Its other businesses, including Scottish Mutual International and Scottish Provident International, and corporate finance business are placed in the portfolio business unit where they will be “managed for value and exit”.

The new strategy is the result of a review carried out by new chief executive Luqman Arnold, who replaced Ian Harley last July.

The losses reflect £866m pumped into its life company subsidiaries over the last year and provisions for £902m in bad debt in its wholesale banking division. Protection business from its Scottish Provident sudsidiary helped relieve some of the gloom with a 47 per cent increase in new business.

Abbey says it has reduced the equity backing ratio of the now closed with-profits funds of Scottish Mutual, Scottish Provident and Abbey National Life to 25 per cent.

It has also bought derivatives to protect the fund from further stockmarket volatility.

Abbey National for Intermediaries sales and marketing director Ambrose McGinn says: “Abbey National for Intermediaries remains focused on IFAs and is a significant element of our business – it is business as usual.”


Isas frozen out as January sales slump

Net sales of retail investment funds slumped to £217m in January, almost £400m down on the same period last year, according to the IMA.The January net total was down by around 16 per cent from December&#39s £269m and represented a huge drop from January 2002, when sales were £610m.A decline in Isa business accounted for […]

Impartial booklet to aid advisers on income protection

IFA consultancy firm Impartial is offering a booklet aimed at helping IFAs highlight the need for adequate income protection to clients.The company says the guide, entitled, The Value of Income Protection Insurance, is the latest in a series of booklets aimed at showing advisers through potentially new business areas. Other guides include mortgages and critical-illness […]

Can I have a word? Get it sorted…

Abbey National may have the smooth, suave housewives&#39 favourite Martin Kemp as the corporate image to get it out of its current hole, but if IFA portal Webline wants to continue the ex-Eastenders theme they need not look too far afield.While simmering hard man Grant Mitchell, aka Ross Kemp, himself might be a touch expensive, […]

J O Hambro appoints managing director

J O Hambro Capital Management has appointed Andreas Lehmann as managing director. Lehmann, who was previously a managing director with Merrill Lynch Investment Managers, will take responsibility for sales, marketing and product strategy. Chief executive Nichola Pease says: “Andreas brings first class sales experience and knowledge of both European and internationals markets. “In addition to […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm