Prudential has reported a 2 per cent drop in sales during the first quarter, from £189m in Q1 2012 to £185m this year, as with-profits bond sales slumped following the RDR.
The provider’s Q1 interim management statement, published this morning, shows individual annuity sales increased 15 per cent from £48m to £55m.
Corporate pensions sales were also up 8 per cent in the first quarter, from £49m in Q1 2012 to £53m this year.
However, onshore bond sales were down 18 per cent, from £55m to £45m, a trend which the provider says is largely due to the RDR.
Prudential says: “Sales of onshore bonds were down 18 per cent to APE of £45m, largely reflecting the anticipated reduction in sales of with-profits bonds as a consequence of the implementation of the Retail Distribution Review regulations at the end of 2012.
“First quarter with-profit bond sales were 21 per cent lower than the first quarter of 2012 despite benefiting from a significant pre-RDR pipeline.
“We anticipate market dislocation will persist in the short-term as consumers and distributors adjust to the new environment and we continue to expect this will dampen our sales of investment bonds in 2013, compared to the level of sales achieved in 2012.”