Prudential has reported a 25% fall in the sale of its with-profits bonds, which it attributes to a fall in the number of bank advisers who were major distributors of the product.
Sales of with-profits bonds through financial advisers remained strong, Prudential said, despite disruption caused by the transition to the new distribution landscape.
During the first nine months of 2013, the UK life and pensions industry has had to deal with the effects of significant regulatory change following the implementation of the Retail Distribution Review (RDR) and introduction of the Association of British Insurers (ABI) code on retirement choices.
In this backdrop, Prudential reported total new UK business profit of £204m, 10% lower than in the first nine months of 2012, which the insurer said reflected lower sales of bulk annuities in the period.
Retail new UK business profit was 2% above the first nine months of 2012, due to the combined positive effects of business mix, pricing actions and higher long-term interest rates, Prudential said.
Total UK APE sales of £540m were 12% lower than in the first nine months of 2012, and included a contribution of £15m from bulk annuities, down from £41m in 2012.
Retail UK APE sales of £525m were 9% lower principally due to the reduction in sales of with-profits bonds and lower corporate pensions sales.
Individual annuities UK APE sales of £161m were 3% lower than the prior period, due to lower internal vesting sales, Prudential said, which declined 6% to £98m, reflecting increased customer deferrals which offset the impact of higher average fund values and stable vesting rates.
Sales of with-profits annuities increased by 15% to £66m.
Corporate pensions UK APE sales of £138m were 7% lower than in the same period last year, mainly due to lower incremental sales and fewer additional members joining public sector schemes, Prudential said.
The insurer said it continues to focus on securing new members and incremental business rather than new corporate pensions schemes, where the opportunities to write business on economically attractive terms are limited.
UK APE sales of other products, principally individual pensions, PruProtect, PruHealth and offshore bonds, of £100m were in line with the first nine months of 2012.
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