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Pru could pass rivals on with-profits, says Cazalet

Prudential could gain significant distribution in the building society sector by nailing its colours to with-profits distribution, says a top independent analyst.

Cazalet Consulting analyst Ned Cazalet believes the post-depolarisation carve-up could enable the Pru to overtake Legal & General and Norwich Union, the biggest players in the sector.

Axa and Zurich also have links to a handful of societies but Cazalet believes the winners will be those that set their multi-tie agenda early on. Both providers are firmly entrenched but Cazalet believes the option to tie to more than one provider could prompt many societies to change allegiance.

The Pru has slimmed down its product range to a core of four or five products, including corporate pensions, which it plans to sell in large volumes.

Cazalet believes building societies will wield new control with providers following depolarisation. He thinks the Pru will aggressively target with-profits distribution to get a foot in the door. A strong line of attack could enable it to corner a lot of the sector while other providers dither over which areas to concentrate upon.

Building Societies Association spokeswoman Rachel Blackmore says: “Societies will want to retain any relationship they have but may turn to other providers for with-profits if only some offer it.”


Government u-turn on Equitable – Tories

Shadow Financial Secretary Andrew Tyrie says he has received a letter from Financial Secretary Ruth Kelly saying she would consider a request from the Parliamentary Ombudsman to bring the Government Actuary&#39s Department within her jurisdiction. Previously Kelly said she remained confident that the Penrose report does not provide evidence proving that any of the relevant […]

SVM fund shows recovery in house building and property sectors

SVM&#39s UK Opportunites fund has showed recovery in various sectors in April including house building, property and telecoms and pub management. The £8.4m fund aims to achieve long term capital growth from a UK equity portfolio within the UK mid and small cap sector.

FSA says split-cap debacle is worst case it has seen

The FSA has described the split-capital investment trust debacle as the worst case of misconduct it has seen but is struggling to get the 21 firms involved to sign up to its compensation package. The statement is believed to be a further attempt by the regulator to force the firms to compromise on a compensation […]

NU hits back at Nationwide&#39s criticism of equity release schemes

Norwich Union has responded to Nationwide&#39s prediction that equity release will be the next misselling scandal, saying the comments are alarmist and do not paint a fair picture of a growing market. Personal finance director Mark Kelly says: “Equity release plans do have their place but, like any other financial product, will not be suited […]


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