Scottish Widows increased profits by 6% during 2008, with life and pensions sales driving much of its growth.
The insurance and investment arm of Lloyds Banking Group saw falling IFA sales as investment bond number plummeted.
Before tax, profits at Scottish Widows rose by £38m to £635m, with life and pensions new business profits up 46% to £238m.
However, profits from existing business fell 12% as long-term lapse assumptions were changed due to market conditions.
Savings and investment sales tumbled 52% to just £437m and managed fund business dropped 55% to £217m.
Sales through IFAs dipped 8%, though Scottish Widows says this reflects a general decline in sales through financial advisers. It says it wants to remain committed to profitable IFA business opportunities.
Corporate and individual pension sales were a strong point for advisers, rising 19% and 75% respectively. However, sales of investment bonds fell 56%.
In a statement issued today, Lloyds Banking Group says: "During 2008, Scottish Widows has continued to make good progress in its key business priorities: to maximize bancassurance success; to profitably grow IFA sales; to improve service and operational efficiency; and to optimise capital management."
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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