Friends Provident has announced its interim results just nine and a half weeks after it demutualised...
Friends Provident has announced its interim results just nine and a half weeks after it demutualised.
The company said it has strengthened its underlying business but industry analyst Ned Cazalet said that Friends was still not financially strong and had put most of the money it raised from flotation into the stock market, which then fell.
The company pointed to a 52% increase in pensions business in the first half of 2001 compared with the first half of 2000. Cazalet noted that the poor figures last year were a reflection of the fact that the company found it hard to write new business because it had limited reserves.
The demutualisation has injected some liquidity into the company ' it raised £1.57bn through its flotation.
The results were compiled as if the company had been proprietary from the start of the year so that meaningful comparisons could be made.
The figures show that there was a pro forma operating profit before tax of £73m comprising of £60m life and pensions and £13m asset management.
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