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Pru bids to be leader For intermediaries

Prudential believes it can become the number one intermediary life

office as rivals face a day of reckoning because they are not writing

profitable business.

Director UK intermediaries Tony Kempster, speaking at the company&#39s

sales conference this month, said he believed the strategies adopted

by some of Pru&#39s plc and mutual rivals were not sustainable in the

long term.

He believes rivals have taken a hit on their margins and are seeking

to generate high volumes of business at the expense of profit. He

also warned that the remaining traditional direct-sales operations

would find it difficult to do business and might have to “sell up or

give up the ghost”.

Pru&#39s recently appointed UK chief executive Mark Wood has made much

of its decision to concentrate on profitable business and not cover

all areas of the market in a bid to drive up the group&#39s share price.

The company is also considering expanding its investment products on

offer bey- ond the top-selling Pru-bond range into more exposed

inv-estment products.

As with other providers, Pru is thought to be concerned about the

impact that Sandler review could have on with-profits bonds business.

The conference in Barcelona was the first since Pru&#39s reorganisation

which brought together the Prudential and Scottish Amicable product

lines and was intended to kickstart the new strategy among the broker

consultant and sales team.

Kempster said: “Some providers have deliberately dropped margins to

get market share. I am absolutely sure there will be a day of

reckoning.”

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