Resolution Group has reported new business of £138m for the first nine months of the year, up 45% from £95m for the same period last year, led by an 155% increase in the company's UK operations.
Total new UK business value increased to £102m, up 155% from £40m for the previous year, reflecting what the group says is a "step change" made to new business profitability in the UK arm to cut costs and improve efficiency. Corporate benefits were the main boost to sales.
Resolution's target for UK cost reductions has been raised to £160m by end 2015, up from a previous target £143m. The group says 78% of this total has been secured.
However the company said some IT problems related to the integration of Axa into the business had caused costs to increase by £35m, and other IT costs would run into the "low tens of millions of pounds".
Costs of the group's outsourcing programme are expected to increase by about £30m to around £280m, largely as a result of changes in the costs of terminating and transferring pre-existing contractual relationships, and the provision of IT platform development services to the international businesses, the company said.
The group said its capital position remains "robust", and that Friends Life Group's successful raising of US$575m of perpetual reset subordinated notes is enabling Resolution to repay the remaining £363m of medium term funding from AXA Group, originally provided on the acquisition of the AXA UK Life Business.
Andy Briggs, group chief executive officer designate said: "Overall, these results demonstrate our continued momentum, with the group delivering significantly improved new business profitability despite the challenges in the wider economy.
"The capital position remains robust and I am pleased with the success of our recent debt offering which has enhanced our financial flexibility and further de-risked cash flow to shareholders.
"We continue to make good progress implementing our strategy and are seeing the benefits of this in the strong UK performance in the period."
The group's international arm dragged on performance due to the ongoing economic uncertainty in the Eurozone, the group said.
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