Prudential Assurance is continuing to back with-profits investment, despite the views of others that...
Prudential Assurance is continuing to back with-profits investment, despite the views of others that it is failing, according Mark Wood, chief executive of the group.
Wood said that Prudential views with-profits as 'the holy grail for the Government' due to the fact it offers investors the opportunity to tap into a diversified range of assets.
The Government has attempted to boost private savings by a number of methods in recent years, with limited success.
Wood argued with-profits creates an attractive level of security and has generated a return that has outperformed deposit accounts and unit trusts.
He said to achieve profitable growth Prudential is to concentrate its business on four key product areas: annuities, bonds, group pensions and Isas and will focus on investors aged 45 and over.
To try and achieve this, the group has broadened its distribution from the previous door-to-door sales model, to going direct to consumers through its call centres, which it outsourced to India last year.
Prudential is also using business to business distribution as well as intermediaries to sell its products.
Wood said international diversification is important in generating profitable sales in difficult markets, and the decision to export a number of divisions to India will save the group's customer service division 50% in costs going forward.
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