Aviva and Prudential are the most likely to gain from consolidation in the UK life assurance industry, according to Deutsche Bank.
Deutsche Bank's analysts also believe Resolution will ultimately succeed in its attempts to purchase Friends Provident. The investment bank made its predictions as it upgraded Aviva to a ‘buy' stock, while downgrading L&G shares to ‘sell'. Deutsche Bank says the impact of the RDR on the IFA distribution channel, coupled with tax changes and the introduction of personal accounts in 2012, will lead to falling sales in the sector. As a result, the role of back books will become more valuable, and the firm says Aviva and Pru's larger back books will benefit them in the future. Frien...
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