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Pru business down but M&G adds boost

Prudential saw a 5 per cent fall in new business in the UK for the first three months of the year but has been boosted by a strong performance from asset management arm M&G.

Last week, the Pru reported a new business profit of £62m for Q1 compared with £65m in the same period last year.

Across the group, investment net inflows have grown 12 per cent from £1.8bn to £2.1bn.

M&G saw a 5 per cent increase in net inflows from £1.68bn to £1.77bn while funds under management rose by 2 per cent from £199.6bn to £202.9bn. As a group, Pru reported an 8 per cent increase in new business profit from £498m to £536m.

Sales in the UK on an annual- premium equivalent basis dropped by 5 per cent from £199m to £189m, which Pru attributes to lower sales of corporate pensions. However, it says this was partly offset by higher sales of with-profits bonds and individual annuities.

Pru group chief executive Tidjane Thiam says: “In the UK, we continue to focus on the products where we have a competitive advantage, namely individual annuities and with-profits. Both of these lines delivered healthy increases in the quarter.”

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