Friends Provident reports robust sales, maintains positive outlook for 2006 |
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Tue, 31 Jan 2006 19:15
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LONDON - British life insurer Friends Provident PLC has reported a bumper year with a 70 percent increase in sales of new policies in 2005. UK' s fourth largest life insurer maintained a confident outlook for the coming year in the backdrop of these results.
The group reported revenues of £5.39 billion in 2005 as compared to £3.18 billion in the previous year. In the UK alone, the business increased by 21 percent to £3.19 billion. "These excellent results reflect the new shape of Friends Provident, with international sales growing strongly and exceeding 40pc of the total, even though our UK sales will have outstripped the market," commented Friends Provident chief executive Ben Gunn.
The pensions' sales in the group increased by 48 percent to £1.58 billion in the last year, while investment increased by 15 percent to £672 million. However, the tough conditions prevailing on the housing market affected the sales of the mortgage-related protection products as they dipped by 8 percent to £400 million. The international sales grew by 311 percent to £2.21 billion over 2005 as compared to £537 million in 2004.
This boom was mainly possible due to the acquisition of Lombard International in January 2005. "In the UK, excellent service and a comprehensive choice of funds allowed us to win a greater share of the group pensions market, alongside strong increases in individual pensions and investment sales," Mr Gunn said.
"The subdued housing market through most of 2005 and increasing competition have continued to constrain protection sales." He added that Friends Provident was very well positioned for the coming year and maintained a confident outlook, "Both core businesses, UK and International, are very well positioned for next year and our distribution arrangements, in the UK and overseas, will have a positive impact to support future profitable growth," he said. Shares in the group increased by 3 pence to 197¼ pence in early trading.
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