Skandia UK was able to increase underlying profits in the first six months of the year despite seeing mutual fund and UK life assurance sales fall more than 20% during the period.
Adjusted operating profit increased by 14% to £91m (IFRS), with reduced integration activity and significant tax benefits more than offsetting any reduction in asset based fees.
Skandia UK mutual fund sales plunged 21% during the first half, falling from £1.29bn to £1.02bn. It attributed the decline to poor investor confidence in “one of the lowest ISA seasons on record”.
It also recorded a decline in bonds sales, with changes to CGT leading to uncertainty over the continued suitability of bonds.
Skandia UK says £1.1bn in net client inflows partially offset turbulence in world markets, with assets under management down 5.73% to £39.5bn in the period.
Life assurance sales fell 26% the first six months, from £249m to £185m (APE) – largely due to declining pensions sales. It says last year’s sales benefited from the lingering effects of A-day.
Skandia International enjoyed positive life assurance sales, up 2.4% on the corresponding period in 2007.
Old Mutual, Skandia’s parent company, has also announced it will look to roll-out Skandia’s popular ‘Best Ideas’ concept across other businesses under the Old Mutual banner.IFAonline
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created