Nearly £20bn of funds transferred from Friends Life

Nearly £20bn of funds transferred from Friends Life

Approximately £20bn of funds previously directly managed by Friends Life have been transferred to Aviva Investors.

In an interim management statement for the first quarter of 2015, Aviva revealed that preparations were under way to receive Friends Life funds managed by external parties.

According to the statement, in the first quarter of 2015 the company achieved £1.38bn in total investment sales, compared with £1.25bn a year before.

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The value of Friends Life new business declined from £32m in the first quarter of 2014 to £20m, driven principally by a decline in retirement business.

Aviva also mentioned plans to close the Friends Life London head office.

In April Aviva announced it had completed the Friends Life acquisition, creating a company with approximately £315bn in assets under management and 31,500 employees.

Analyst view

Peter Ward, dealer at London Capital Group, said: “Aviva’s turnaround plan is on track, with synergies and savings from this newly enlarged insurance behemoth expected to start bearing fruit in the coming months.

“The acquisition of Friends Life, completed recently, will start to factor into the numbers from the next quarter, with a £20bn boost to assets, although this business saw a fall in new business in the first quarter.”