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Daily Insurance Industry News
Wednesday 18th of July 2018
January 27, 2009

Friends Provident reports 11% fall in sales

by Gill Montia

Story link: Friends Provident reports 11% fall in sales

Friends Provident has reported an 11% drop in sales during 2008.

The company will issue its full-year results on 17th March but today’s trading update estimates last year’s sales at £1.005 billion, compared with £1.135 billion in 2007.

The life and pensions provider has attributed the decline to the economic slowdown and the financial crisis, although the company notes that during the final quarter of last year sales fell by only 4%, despite the deepening of the credit crisis and market turmoil.

The group’s chief executive, Trevor Matthews, comments that solid growth in overseas operations eased the decline in the three months to the end of December, with overseas sales rising by 19% during the whole of last year, to £456 million.

The group is also continuing a cost-cutting programme that should yield annual savings of around £40 million by the end of 2009.

Mr Matthews’ view of the operating environment in the UK and overseas is summed up as “tough”.

Earlier this month, Friends cut bonus rates on its with-profits policies by up to 20% in response to a weak investment performance by its with-profits fund, which lost 10.5% during 2008.

 

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