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Prudential new business figures remain flat in 2007

Prudential’s UK new business figures remained flat in 2007 at £897m on an annual premium equivalent basis.

On the retail side, sales were up 4 per cent on 2006 driven by strong growth in individual annuities, corporate pensions, with-profit bonds and lifetime mortgages.

Prudential says the UK new business figures for 2007 were in line with 2006 because the 2006 figure included £63m of wholesale credit life sales under a contract that was not renewed in 2007.

With-profits bond sales rocketed by 59 per cent year-on-year to £41m while total UK with-profits sales were up 21 per cent on 2006 to £231m.

Individual annuity sales grew by 4 per cent tp £283m in 2007 compared with 2006 which the life office said was down to increasing sales emerging through its partnership arrangements.

Corporate pension sales increased 10 per cent year-on-year to £247m while lifetime mortgages increased by 75 per cent in 2007 to £156m.

Group chief executive Mark Tucker said: “As we look ahead into 2008 the general economic outlook is uncertain and it remains to be seen how far this will impact upon the appetite to save. In the US and the UK our primary focus is on the retirement market, where demand is less sensitive to a general economic downturn than in other sectors. We therefore expect to see further profitable growth in both these markets, and to maintain our long term sector out-performance in the US.”

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