View more on these topics

Pru UK profits up despite 43% drop in annuity sales

Prudential has posted a 10 per cent rise in UK profits despite individual annuity sales falling by 43 per cent in the wake of the Budget.

According to the firm’s half year results, published this morning, Prudential’s UK arm made a £374m profit during the first six months of 2014, up 10 per cent from £341m in the same period last year.

UK sales rose 22 per cent from £355m in the first half of last year to £433m this year.

However, while four new bulk annuity deal brought in total income of £104m, year-on-year individual annuity sales have fallen 43 per cent from £111m to £63m. The firm says income drawdown sales have risen 95 per cent during the period.

Corporate pensions sales were down 15 per cent, from £93m last year to £79m.

Prudential Group chief executive Tidjane Thiam says: “In this uncertain new regulatory landscape, we focused on developing existing product propositions to meet customers’ evolving needs.

“our UK team was able to complete sales of £104m of bulk annuity transactions above our hurdle rate – there were no bulk annuity transactions in the first half of 2013 – and to significantly increase sales of with-profits bonds by 25 per cent as retail annuity sales decreased by 43 per cent.”

The UK performance compares with a 7 per cent rise in profits for the firm globally, from £1.4bn in the first half of 2013 to £1.5bn in the first six months of this year. New business was up 6 per cent across the group, from £2.1bn to £2.3bn.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com