Prudential has recorded a 1 per cent increase in UK pre-tax profit for the first six months of 2013, from £336m to £341m, despite suffering a hit on sales as a result of the RDR.
The provider’s half year results, published this morning, reveal year-on-year UK sales dropped 14 per cent, from £412m in the first half of 2012 to £355m this year.
Prudential chief executive Tidjane Thiam says sales volumes across the industry have been affected by the implementation of the RDR.
He says: “Our UK life business, which continues to cater to the needs of an ageing British population, delivered IFRS operating profit of £341m, up 1 per cent.
“UK industry sales volumes have been affected by the implementation of the conclusions of the RDR.
“Prudential UK remains focused on its core business of individual annuities and with-profits products. We believe the strength of our products and brand will position us well once distributors have adjusted to the new environment.”
Onshore bond sales dropped 22 per cent, from £106m to £83m, while corporate pension new business was down 11 per cent, from £104m to £93m. Individual annuity sales increased 6 per cent, from £105m to £111m.
The end of contracting-out for defined contribution schemes in April 2012 means Prudential no longer receives rebates from the Department for Work and Pensions. This resulted in a £9m fall in sales in the first half of 2013.
In addition the provider did not write any bulk annuity business in the first half of 2013, compared to a single £27m deal in the same period last year.