Profits at Prudential UK fell flat last year, barely upticking from the year before, as the rush to sell onshore investment bonds subsided following the introduction of the Retail Distribution Review (RDR).
UK life IFRS operating profit was £706m, compared to £703m in 2012.
Retail APE sales were lower by 12%, and retail new business profits were 3% lower year-on-year.
Prudential said this was due to the market adjusting to the post-RDR environment, which had a particular impact on sales of onshore bonds, which surged in 2012, the last year commission could be paid to advisers from a financial product.
"The onset of the RDR has significantly impacted the timing of sales volumes in the UK retail investments markets over the last two years," the life company said.
"For Prudential, this resulted in very strong sales of onshore bonds in 2012, due to heightened activity prior to the implementation of the RDR, while in 2013 volumes returned to levels consistent with 2011, the last ‘undisturbed' year."
Prudential onshore bonds APE sales of £176m were 23% lower last year as a result, which contributed to an overall decrease in retail APE sales of 12% to £697m, the company said.
It also blamed regulatory changes on a fall in annuity sales.
In individual annuities, market volumes declined 15% during the year, after a strong year in 2012 prior to the introduction of Gender Neutral Pricing and the RDR.
In addition the Financial Conduct Authority's thematic review into the UK annuity market, which ran throughout 2013, concluded in February 2014 with the announcement that it was launching a further study to examine competition and choice in the retirement income market as a whole.
Prudential's direct advice service, Prudential Financial Planning, is seeing demand for advice from the life company's existing direct customers, and adviser numbers grew to 196 by the end of 2013.
M&G, Prudential's asset management arm, reported net outflows of £700m from its UK retail business for 2013 after slowing flows into some of its most popular funds.
M&G posted record profits in 2013 but acknowledged its UK business had "slowed" following four successive years atop the UK net retail sales chart.
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