Income drawdown and personal pension sales have driven Prudential’s UK business to a 16 per cent increase in new business profit to £231m.
But the lack of take-up of fixed income products has seen M&G, Pru’s asset management business, hit by net outflows of £5bn for the year to 30 September.
In its latest results, published today, Pru has posted an overall increase in UK sales of 21 per cent to £762m for the first nine months of the year. Retail sales are up 26 per cent to £613m for the same period.
Income drawdown sales are up a massive 209 per cent from this time last year at £71m, while individual pension sales have more than doubled from £48m to £100m.
Individual annuity sales are down 50 per cent fro £86m to £43m.
The PruFund multi-asset range has seen sales rise by 84 per cent to £395m, with total assets under management up 29 per cent since the start of the year to £14.9bn.
For the year to date, M&G saw retail net outflows of £7.3bn, compared to inflows of £5.3bn this time last year. These outflows have been partially offset by inflows on the institutional side of £2.3bn.
Pru group chief executive Mike Wells says: “In our UK life business, new business profit increased by 16 per cent to £231m in the first nine months of the year, reflecting our proactive response to the changes brought about by pension freedom reforms.
“In asset management, M&G’s retail business continued to experience net outflows in the third quarter, mainly reflecting softer consumer sentiment on fixed income assets.”
He adds: “Overall, our strong performance in 2015 continues to demonstrate the successful execution of our strategy in pursuing clearly defined long-term opportunities in Asia, the US and the UK. We remain optimistic about the outlook across the group, particularly in Asia where the compelling long-term fundamentals of the region are unchanged.”