Prudential is dropping the Scottish Amicable brand but IFAs have been assured they remain an integra...
Prudential is dropping the Scottish Amicable brand but IFAs have been assured they remain an integral part of Prudential's strategy going forward.
The life assurer has also announced it is exiting the general insurance industry, selling that part of its business to Credit Suisse's insurance arm, Winterthur, for £353m in cash.
Commenting on the new branding, Darragh Leeson spokesman for Scottish Amicable, explained: "The impact for distribution including the IFA channel is that the company will see a move from a product focus and separate business units to being one brand - Prudential. The Scottish Amicable brand will change and be fully integrated to the Prudential brand."
Leeson added: "We're moving to become entirely customer focussed and we'll achieve this focus by having distinct distribution channels. The IFA channel is central to this strategy. The manufacture of products will all come from one central source, which is PruLab, which will supply products to this distribution channel."
"With the removal of the direct sales force of Prudential it was felt there wasn't the same need to have the differentiation of Scottish Amicable and at a consumer level there is a greater awareness of the Prudential brand. Scottish Amicable, as a brand, has a strong heritage but it is seen as a small low key player."
Scottish Amicable now faces 95 job losses by the end of 2002. A further 330 will go by the end of 2003 but these will be through natural attrition such as staff turnover.
The Prudential said today that 2,100 job cuts will take place by the end of 2003. This adds to the 2,000 it announced earlier in the year.
The actions form part of Prudential's initiative to try and cut costs by around £175m a year by 2004. The Pru has made clear that it will concentrate on its most profitable lines of business including with-profits bonds and group pensions.
Winterthur, which trades as Churchill in Britain, now receives 1.9m existing home and insurance policies and the chance to tap into the Prudential's 4m long-term saving customers. It's purchase also sees 1,200 Prudential employees transferred to Churchill. Policies, however, will still be marketed under the Prudential brand.
The shakeup was applauded by the city this morning. In afternoon trade, Prudential shares had improved 46p to 781p.
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