Friends Life Group said it is investigating drop-offs in persistency for some products ahead of the RDR despite a rise in sales of 24% in the nine months to September.
Total sales measured on an annualised premium equivalent basis for the nine months to 30 September 2011 were £880m, up from £705m for the same period in 2010.
UK sales amounted to £547m, an increase from £316m a year ago. Friends Life said the rise reflects the increased scale of the UK business and premium growth in existing corporate pension schemes.
However, the group said it was worried about persistency in relation to certain products.
Broker activity in the run-up to the introduction of the Retail Distribution Review had impacted on the corporate benefits business in both the heritage AXA and Friends Provident business units, it said.
The company is undertaking investigations as part of normal governance processes, it said.
Elsewhere in the interim statement, Friends Life said it has this month entered into a 15 year outsourcing contract with Diligenta, with policy administration and IT services for with-profits, annuity, legacy protection and UK wealth business lines being outsourced.
The contract will see approximately 1,900 Friends Life employees transferred to Diligenta.
Friends Life said the outsourcing arrangement is expected to generate annual cost savings of £60m by 2015. The one-off cost of delivering these savings, is expected to be £250m.
Has run Cautious Managed fund since 2011
What’s right – not what sells
Richards fires back at committee report
Available on Investcentre platform
Invested from 2006-2011