Friends Provident saw profits plunge 20% and UK new business dip 12% in the first half of the year, as it began to implement its new strategy.
EEV underlying profit before tax fell from £264m to £211m; while IFRS underlying profit before tax slipped 88% to £13m, mainly attributed to a £70m charge related to the widening of corporate bond credit spreads. Friends unveiled its new UK business plan in its January strategic review – which focuses on protection, the group pensions market and annuities for existing pensions customers. The shift in emphasis saw UK new business drop to £319.6m in the first-half, from £361.8m (APE). Individual pensions sales fell 37% to £20.4m, as it ceased to offer initial commission on new policies. T...
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