View more on these topics

Pru sees strong pensions sales as M&G hit by £5bn outflows

Prudential-Logo-700x450.jpg

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.”

Recommended

Boardroom-Business-Chair-Executive-Corporate-700x450.jpg

Prudential UK chief exec steps down

Prudential UK & Europe chief executive Jackie Hunt is leaving the organisation after two years in the position. Hunt was appointed to the role in 2013 and succeeded Rob Devey, who left to join advice firm Towry. She was previously finance director at Standard Life. Prudential group investment director John Foley will become UK chief […]

Prudential-Logo-700x450.jpg
2

Prudential reshuffles multi-asset range

Prudential has launched three multi-asset funds to add to its actively managed Dynamic Focused Portfolio range. The Dynamic Focused Portfolios will be formed of five low-cost products as the firm adds three new funds, joining the existing Managed Defensive and Cautious Managed Growth funds in the range. These existing funds have been renamed to fit the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Leave a comment