Life Insurance  

Pru blames end of bank advice for fall in business

Prudential has seen a 10 per cent fall in the first nine months of this year compared to the same period in 2012, reflecting lower sales of bulk annuities in the period.

Its Q3 interim results, published today (14 November), revealed that total annual premium equivalent life and pensions sales at Prudential for the first nine months of this year were £540m, 12 per cent less than the same period in 2012.

According to Prudential bosses, the reduction in sales was expected as sales of with profits bonds fell following the implementation of the RDR and there were also fewer corporate pensions sales.

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Prudential claimed there had been a contraction in adviser numbers, particularly within banks that were previously major distributors of with profits bonds.

Individual annuities APE sales of £161m were 3 per cent less than the prior period.

The reduction was due to lower internal vesting sales, which declined 6 per cent to £98m, which bosses said reflected increased customer deferrals that offset the impact of higher average fund values and stable vesting rates.

However, sales of with profits annuities increased by 15 per cent to £66m.

APE sales of onshore bonds of £126m was 22 per cent less than the first nine months of 2012, driven by with profits bond APE sales of £114m, which reduced by 25 per cent.

But it was far from all bad news for Prudential, with the provider revealing sales through financial advisers remained strong, despite disruption caused by the transition to the new distribution landscape.

APE sales of other products, principally individual pensions, PruProtect, PruHealth and offshore bonds, of £100m were in line with the first nine months of 2012.