Prudential has reported UK life retail sales of £593m, up 51 per cent on the same period last year.
Half year results showed PruFund sales were up 80 per cent to £438m, with UK insurance and asset management operating profit up 3 per cent at £730m for the period.
Overall, Prudential’s operating profit was up 8 per cent to £473m, as with-profits and in-force annuity earnings were broadly in line with the prior year at £306m.
In June, the provider announced it was withdrawing from the open annuity market and was no longer accepting applications for new external conventional annuity business from financial advisers.
Profits from new annuity sales reduced to £27m, against 2015’s £66m, following the change of stance on annuities.
Prudential’s asset management business, M&G, continued to experience significant net outflows in the first half, which Prudential said were expected.
Group chief executive Mike Wells commented that in the UK, Prudential continues to successfully manage the effects of market turbulence.
“The quality of our earnings, geographic diversity and strong balance sheet position us well to grow over the long term. We remain on track to achieve our 2017 financial objectives.”
Bob Wilson, independent financial adviser and director at Norwich based Greensky Wealth, said the one thing that makes Prudential unique over other companies is PruFund.
“It’s got a proven track record, is well run and is able to invest slightly differently to other funds because of its size.
“For example, it can invest in big infrastructure and can hold corporate bonds and government bonds full term. If Prudential didn’t have it, those figures wouldn’t be looking quite the same.”
ruth.gillbe@ft.com
