Prudential posts profit rise despite 43% annuity slump

Carmen Reichman
clock

Insurer Prudential's UK life business has posted a 10% rise in operating profits as sales switched from annuities to income drawdown, its interim results have shown.

Prudential posted an operating profit of £374m in its UK life business in the first half of the year, despite suffering a 43% drop in annuity sales. The insurer said the changes announced in the March Budget contributed to an acceleration in demand for its drawdown products, which posted a 95% growth in sales. It cut the minimum income requirement on its drawdown product from £50,000 to £25,000 in April, shortly after the Chancellor announced radical reforms to pensions in his fifth Budget speech. Prudential's total UK life sales increased by 22% to £433m in H1, largely down to fou...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

Doug Brodie: Using investment trusts to solve the drawdown problem

Doug Brodie: Using investment trusts to solve the drawdown problem

Part one in a series...

Doug Brodie
clock 14 November 2025 • 4 min read
'A hard act to beat': Annuity pricing and value for money

'A hard act to beat': Annuity pricing and value for money

‘People cannot have their cake and eat it (although they try)’

William Burrows
clock 04 November 2025 • 5 min read
L&G forecasts annual annuity volumes to more than double to £20bn by 2034

L&G forecasts annual annuity volumes to more than double to £20bn by 2034

To launch blended annuity drawdown product next year

Jenna Brown
clock 23 October 2025 • 4 min read