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Widows boosted by 25% increase in IFA business

Booming IFA business through Scottish Widows helped relieve the gloom

of downbeat annual results from LloydsTSB.

Widows&#39 sales last year via IFAs jumped by 25 per cent to

£348.5m from £279.8m in 2001 on an equivalent premium

income basis. The results mean Widows has increased its share of the

IFA market from to 4.5 per cent from 3.8 per cent and IFA business

now makes up around 45 per cent of Widows&#39 business.

The results also show that Widows survived 2002 without requiring a

capital injection from its parent although LloydsTSB says it may

have to inject capital if the FTSE100 falls to 3,000.

It estimates that if the markets remain at that level, Widows would

require an injection of £300m.

LloydsTSB says it is in talks with the FSA about compensating

investors in Widows&#39 extra income & growth plan who face capital


It says it will know how much a compensation it will have to pay out

by the end of the year.

LloydsTSB has also put aside £165m to cover endowment misselling

by the now defunct Abbey Life salesforce and another £40m for

the final costs of pension misselling.

Total profit for the LloydsTSB group fell by 18 per cent to

£2.6bn last year from £3.16bn in 2001.

Scottish Widows head of IFA marketing Alan Whiting says: “We have

listened very carefully to the views and needs of IFAs and then

systematically worked tow-ards improving and enhancing our offering.”

Fiona Price director Donna Bradshaw says: “Scottish Widows has turned

a corner. The investment performance has improved a bit, which was

something that put us off them before.”


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