Life insurer Friends Life has reported a "limited immediate Budget impact" on its retirement income business but said it expects annuity sales to drop by up to 70% in the medium term.
In its first quarter results out today the provider reported a new retirement business income of £15m, compared with £20m in March last year, saying this reflected "expected margin pressure". But the firm said its new business sales will be "adversely affected" by the Budget changes and it does not expect to achieve its 10% annual growth target in 2014. Friends Life said it is developing "flexible new retirement propositions" as well as focusing on other business areas not affected by the Budget to benefit financially from the changes going forward. Overall, the firm's UK division ...
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