Britannic has forecast that sales will continue to suffer as a result of eliminating its traditional...
Britannic has forecast that sales will continue to suffer as a result of eliminating its traditional sales agents last year and that they are unlikely to recover until 2003.
The life group is overhauling its sales techniques in favour of intermediaries, which to date as a consequence of the restructure have witnessed sales growth climb by almost a quarter.
Brian Shaw, chief executive of Britannic says: "New business through IFAs and partnerships is up by 23% and more than 40% respectively. The reduction in sales force new business is on plan despite the total withdrawal of Britannic's traditional sales force one month ahead of schedule."
Earlier this year, the Birmingham-based insurer predicted that the 40% reduction in its salesforce would lead to a reduction in sales performance, blaming the introduction of stakeholder pensions and the need to lower costs.
However, figures released today show sales in decline to £42.1m from £54.9m a year ago. Britannic Asset Management secured a third of the pension mandates in the first six months of this year, £80m compared to £300m for the same period last year.
Head of the asset management division Danny O'Neil last month admitted the restructure has increased tension among Britannic's clients.
"On-going new business for Britannic continues through partnership arrangements, IFA sales and a reactive service to existing customers through our new small sales team," says Shaw.
"We have now enrolled 5,300 companies with 80,000 employees and have written £1m of annualised premium income.
"Britannic Money has secured £399m of mortgage completions with 22% coming via non-IFA telephone and internet sales. The average loan to value ration remains at a very prudent 60%.
"Looking ahead, we are confident that the growing momentum of our single payment sales will continue. We remain on target to meet our challenging objective for group sales to reach a total equal to last year despite the first year impact of the distribution restructure at Britannic."
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