View more on these topics

Pru UK profits surge due to Solvency II


Profits in Prudential’s UK business jumped 60 per cent in 2015, driven by a one-off £339m boost as result of Solvency II regulations.

The increase in pre-tax operating profit – from £729m in 2014 to £1.2bn last year – includes £339m gained from the insurer’s response to the European capital requirements.

Its full-year results say a “repositioning of the fixed income asset portfolio, increasing to 95 per cent the proportion that would benefit from the matching adjustment under Solvency II” produced the boost.

However, Pru also confirmed it would be retreating from the bulk annuity market because of the impact of Solvency II.

Individual annuities sales, on an APE basis, fell 46 per cent to £57m while the bulk annuity division generated APE sales of £151m, down from £171 in 2014.

The firm says Solvency II “significantly reduces our appetite to transact bulk business going forward”.

However, APE sales of drawdown contracts almost trebbled – to £102m – while individual pension sales more than doubled to £150m compared to 2014. Across the group, total pre-tax operating profit grew 26 per cent from £3.2bn to £4bn.

Group chief executive Mike Wells says: “We have delivered a strong performance in 2015. We continue to grow across our key metrics despite the macroeconomic uncertainty and the challenges presented by low long-term interest rates.

He adds: “The fundamentals of the group remain compelling, our opportunities are intact and we are in an enviable position to benefit from the attractive structural and demographic opportunities in Asia, the US and the UK.”



Standard Life and Pru to cap exit fees

Standard Life has introduced a 5 per cent cap on exit penalties for thousands of individual and workplace pension customers, Money Marketing can reveal. The insurer made the change in January ahead of Chancellor George Osborne announcing the FCA’s new duty to impose a cap on “excessive” exit fees. In addition, Money Marketing can also […]


Pru boosts with-profits final bonus payouts but returns slump

Prudential has maintained total annual bonus payouts across its with-profits funds at £600m as investment returns slumped to 3.2 per cent during 2015. Total final bonus payouts – which are paid when the policy reaches maturity – edged up from £1.3bn in 2014 to £1.4bn last year. Annual investment returns were down, however, from 7 […]


Pru to pull back from annuities over Solvency II

Prudential UK is set to cut its appetite for UK annuities as tough Solvency II capital requirements slash margins. The Financial Times reports the insurer has found capital requirements for individual UK annuities under Solvency II are up to 50 per cent higher than before the regulation took force. Prudential wrote £1.7bn of bulk annuities in 2014, while […]


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

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, […]

Tax avoidance (the fight goes on)

In recent times, we have witnessed high-profile celebrities and sports stars make the headlines for potential tax liabilities on ‘failed’ tax avoidance schemes. We are now used to reading about these individuals, but what about those who advise on such schemes? Read more


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. Maybe they will invest some of it into their Customer support infrastructure and run their own ISA instead of relying on 3rd party, ‘we’ll save you money’ companies.

  2. Ditto Ted, can I add their web support is next to useless as well !

  3. Okay Statler and Waldorf, we all know they’re not perfect (but then again who is!). I for one think those results deserve just a little praise!

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm