Rising annuity sales drive new business surge at Pru


    Prudential’s new business profit for the third quarter of 2012 was up 56 per cent year-on-year, boosted in part by higher annuity sales figures, according to the company’s third quarter results.

    In the company’s interim management statement, published this morning (14 November), Prudential reported new business profit for the UK of £75m for Q3 2012, compared to £48m in Q3 2011. Year-to-date figures were also positive, reaching £227m compared to £194m the previous year.

    Total annual premium equivalent sales were £617m, 8 per cent higher than the first nine months of 2011. The company has said this was mostly due to higher sales of individual annuities, with-profits bonds and a bulk annuity sale.

    Article continues after advert

    New business profit was £227m for the first nine months of 2012, an increase of 17 per cent over 2011, which the company said was driven by “higher sales and a more favourable product mix”.

    The negative impact on product margins of lower interest rates was more than offset by this favourable business mix, with lower sales of corporate pensions and higher sales of individual annuities, with-profits bonds and bulk annuities which have a higher margin, the firm added.

    Tidjane Thiam, group chief executive of Prudential, said: “The global macroeconomic environment remains challenging with persistently low government bond yields and recently we have also seen the [International Monetary Fund] downgrade global growth forecasts.

    “Although we remain defensively positioned, we are focused on the long-term profitable growth opportunities available to us, particularly in south-east Asia.”


    Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

    Nearly There…

    You have successfully answered all the questions correctly, well done!

    I completed this CPD in

    To bank your CPD please complete the form below.

    Were the stated learning objectives met?

    Why weren't they met?

    What did you learn from undertaking this CPD exercise?

    Why did you undertake this piece of learning?

    Any comments about this article or FTAdviser's CPD in general?


    Congratulations, you have successfully completed and banked this piece of CPD

    Already Banked!

    You have already banked for this article.

    To bank your CPD you must sign in or


    One or more questions have been incorrectly answered,
 please review your answers and try again.

    Please complete all the above text fields to bank your CPD.

    More Your Industry CPDSee my completed CPDSee all CPD