Friends Life UK sales surge after Winterthur acquisition
UK sales up £25m driven by £20m boost from Winterthur Life UK following November acquisition.
Friends Life has reported a strong increase in new UK business in the first quarter of 2012, with sales rising from £172m in Q1 2011 to £197m this year driven primarily by a sales boost from Wintherthur Life.
The company reported an eight per cent increase in new business for the first quarter of 2012, with total sales on an annual premium equivalent basis reaching £292m, compared to £270m in the corresponding period last year.
Total new business for the UK was £197m, up 15 per cent from £172m in the first quarter of 2011 and including £20m from Winterthur Life UK. Friends Life parent company Resolution acquired Winterthur in November 2011.
Resolution itself reported the value of new business in the UK increased to £22m from £6m in the first quarter of 2011.
However, international business excluding Lombard fell from £64m in Q1 2011 to £51m in Q1 2012, a decrease of 20 per cent.
Andy Briggs, group chief executive of Friends Life Group, said: “Momentum in Friends Life has been maintained with materially improved business results, especially in the UK where our strategy is working and helping to drive cost synergies and efficiencies throughout all our activities.
“While the international division has faced some adverse operating and market conditions impacting volumes, Lombard has generated strong sales. The capital position remains strong and we are well placed for the opportunities emerging this year through auto-enrolment and RDR.”
According to an interim statement, the group is on track to launch its asset management business, Friends Life Investments, in mid-year. The group has served notice on £8bn of core non-linked and shareholder assets, with £6bn expected to transfer to FLI upon launch.
Mike Biggs, chairman of Friends Life parent company Resolution, said: “The Board sees good progress on the delivery of the financial targets of the UK Life Project. The UK business is benefiting from the financial discipline brought to the acquired businesses.”