Prudential has exited the front-end commission market for individual pensions and unti-linked bonds and will introduce factory gate pricing instead.
As part of the restructure of its business announced today, Pru will set a wholesale price and the distributor will add the commission separately through negotiation between the customer and adviser, rather than setting the retail price of products.
Pru will now operate three business units: wholesale, retail retirement and mature life and pensions.
Its strategy in wholesale retirement income is to participate in bulk and back book buyouts.
In retail retirement it will focus on savings and income for customers nearing or in retirement which includes annuities and equity release.
On the mature life and pensions side of the business, the life office says it is looking at internal cost cutting, further offshoring or outsourcing in a bid to cut costs.