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Friends Life reports growth despite investment bond move

Friends Life has reported a 21 per cent increase in first quarter life and pensions regular premium sales, although single premium new business figures were hit by the provider’s decision to stop marketing its investment bond products during 2011.

An interim management statement, published today, shows total UK life and pensions regular premium sales increased 21 per cent from £122.5m in Q1, 2011 to £147.8m in Q1, 2012.

Within the provider’s corporate division, regular premium pensions sales increased 34 per cent from £92.3m in the first three months of 2011 to £123.9m in Q1 this year.

Corporate regular premium protection sales were up 47 per cent from £3.6m in Q1 last year to £4.2m in Q1 this year.

Individual regular premium protection sales plummeted 41 per cent, from £22.1m to £13.1m, between Q1, 2011 and Q1, 2012, while individual regular premium pensions sales increased 17 per cent from £3.6m to £4.2m.

Total UK life and pensions single premium sales dropped from £494.2m in Q1 last year to £491.9m in Q1 this year following the provider’s decision to stop marketing its investment bonds during 2011.

Single premium annuities sales were up 24 per cent, from £88.2m in Q1, 2011 to £109.3m in Q1 this year, while single premium pensions sales were up 17 per cent from £62.4m to £73.2m during the same period.

Single premium corporate pensions sales also increased 34 per cent, from £209.1m in Q1 last year to £280.2m in Q1, 2012.

However, single premium investment new business dropped 84 per cent, from £134.5m to £21.1m.

Friends Life chief executive Andy Briggs says: “Momentum in Friends Life has been maintained with materially improved business results, especially in the UK where our strategy is working and helping to drive cost synergies and efficiencies throughout all out activities.”


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