Prudential has seen new business profit in the UK fall 5 per cent in the first three months of the year to £62m compared to £65m for the same period last year.
However across the group investment net inflows have grown 12 per cent from £1.8bn to £2.1bn, led by Pru’s asset management arm M&G.
M&G saw a 5 per cent increase in net inflows in Q1 from £1.68bn to £1.77bn, while funds under management rose 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.
Pru says its UK new business results continue to reflect its “value over volume” strategy.
Sales in the UK on an annual premium equivalent basis dropped 5 per cent from £199m in Q1 last year to £189m, which Pru attributes to lower sales of corporate pensions. However it says lower corporate pensions sales were partly offset by higher sales of with-profits bonds and individual annuities.
Individual annuities sales in the UK were up 14 per cent to £48m. External annuities sales also rose 13 per cent to £17m, driven by an increase in with-profits sales through advisers.
Onshore bond sales of £55m were up 28 per cent compared to this time last year, including a 40 per cent increase in with-profits bonds sales of £52m.
Corporate pension sales dropped 37 per cent to £49m. Pru says corporate pension sales were high this time last year due to new defined contribution members joining its schemes following the closure of some defined benefits schemes.
Other product sales including individual pensions, PruProtect, PruHealth and offshore bonds, were up 3 per cent at £37m.
Pru group chief executive Tidjane Thiam (pictured) 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 product lines delivered healthy increases in the quarter, particularly with-profits which is benefiting from customer demand in the current low interest rate environment.
“Asset management has recorded net inflows of £2.1bn, a 12 per cent increase over last year, led by M&G. M&G’s fund managers continue to deliver strong investment performance for our clients and our broad product offering across asset classes positions us well for ongoing success.”