Prudential's UK life arm has reported a growth in operating profits of 7%, despite suffering a sharp fall in its individual annuity business following the announcement of the government's pension reforms.
The life company recorded profits before tax and costs of £752m, up from £706m. Individual annuity sales were down 49% but this was offset by a 41% growth in sales of retail investment products, including onshore and offshore bonds, individual pensions and income drawdown. Offshore bond sales were up 44%, income drawdown sales grew by 133% to £35m and individual pensions sales increased by 44% to £72m, as customers selected more flexible retirement products in the run up to the April repforms, the insurer said. Onshore bond sales increased by 32% to £232m while with-profits bond sa...
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