Prudential has reported a 4% increase in UK sales in Q1 this year, to £189m (APE basis).
Overall the group has recorded a solid opening to the year, with total sales up 13% to £729m. The rise is mainly attributed to its Asian business, which was 30% higher at £375m.
However, deteriorating market conditions have hit the M&G asset management arm, with inflows down 59% on the same period last year, to £600m.
M&G’s total funds under management also fell in Q1, down 5% to £159.8bn.
In the UK, individual annuity sales reported a slight dip on Q1 2007, down 3% to £64m. With-profits annuity sales continued to grow strongly, with a 13% increase to £12m.
Prudential’s lifetime mortgage sales continued to climb, with draw-downs of £51m up 50% on Q1 last year. Sales through intermediaries were up 43% to £33m.
The volatile and uncertain conditions have seen retail with-profits business climb, Prudential says. Total sales climbed 17% to £86m, while with-profits bonds sales jumped 112% on the Q1 last year, to £18m.
Sales of offshore products in the UK market shot up 124%, while total sales in including Europe increased to £19m.
PruHealth sales, which are not included in the total APE figures, jumped 25% to £20m.
Prudential group chief executive Mark Tucker says the figures show strong momentum despite an uncertain and volatile market.
“UK growth of 4% is particularly pleasing as we have maintained our value driven focus on writing only the business that meets our profitability criteria,” he says.
“The current economic environment is challenging but I am confident that our geographic diversity, advantaged distribution, product expertise and management capability position us well for future growth.”
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