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Brokers boost CGNU but Pru IFA sales fall

Increased sales of Norwich Union products through IFAs contributed to CGNU&#39s overall business growth last year.

In contrast, Prudential&#39s business results for 2000 were overshadowed by a decline in intermediary sales.

CGNU, formed by the mer ger of CGU and Norwich Union in May last year, saw total new business sales worldwide rise by 24 per cent to £13.5bn from just over £10.2bn in 1999. Prudential&#39s total sales worldwide for 2000 increased by 13 per cent to £13.9bn from £12.3bn in 1999.

Equivalent premium inc ome through NU&#39s IFA channel leapt 19 per cent to£853m from £740.1m in 1999. Total UK long-term savings sales through IFAs were up by 25 per cent to £5.7bn from £4.5bn in 1999.

Sales of Prudential&#39s insurance and investment products through IFAs fell 28 per cent to £384m from £531m in 1999. Pru blames the drop on falling with-profits bond sales.

CGNU says it will remain committed to the IFA channel in 2001 but it will also be expanding its partnership arr angements of direct salesforce and telesales operations.

CGNU sales and marketing director Peter Hales says: “No further significant partnerships are planned. But, with stakeholder and Cat-standard products on the market, we are having a number of discussions. We are looking to increase sales to IFAs from 75 per cent to 80 per cent. We are also looking to gain 20 per cent of the stakeholder market.”

Prudential group chief exe cutive Jonathan Bloomer says: “Our new business figures represent another very strong performance and demonstrate the continuing benefits of our international strategy.”

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