Offshore companies are seeing increases in international sales, with both Royal Skandia and Royal Ba...
Offshore companies are seeing increases in international sales, with both Royal Skandia and Royal Bank of Scotland (RBS) reporting strong profits in this area.
On the life side, Skandia UK's offshore arm, Royal Skandia reported an increase in equivalent premium income (EPI) sales growth of 31% for 2005 compared to 2004.
According to Skandia, this growth was largely driven by strong sales of single premium products, which increased by 44%, as well as institutional support for Royal Skandia products, particularly in the UK, where they were largely used for inheritance tax mitigation.
Shelly Robertson, international marketing manager at Skandia, said: "Our multi-manager products continue to attract increasing number of investors in international markets.
"The opportunity to invest in hard currency options is particularly attractive in countries such as South America where the sale of regular premium products were strong."
On the banking side, RBS also reported strong results for 2005, with 42% of its profits coming from its international operations.
Sir Fred Goodwin, group chief executive officer at RBS, said group operating profits were also up by £1.1bn (16%) from the previous year with total profits for the year being £8.2bn. Profits before tax were up 21% to £7.9bn.
According to Goodwin, one area the group had focused on in 2005 was Asia after it took a 10% stake in the Bank of China.
Goodwin said: "We are working closely with the Bank of China to develop business co-operation initiatives in areas such as credit cards, wealth management and corporate banking.
"We are also supporting Bank of China in key infrastructure areas, including risk and financial management, human resources and information technology."
RBS invested $3.1bn in Bank of China, with $1.6bn financed by the sales of shares in Spanish bank Santander Central Hispano.
Royal Skandia reports 31% EPI sales growth for 2005
44% of Royal Skandia sales driven by single premium products
RBS reports 42% of profits come from international business
RBS invested $3.1bn in Bank of China, funded in part by sales of Santander Central Hispano
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