Prudential UK sales edge up after bonds and corporate pension boost

Prudential has reported a marginal increase in UK sales to £569 million in the nine months to the end of September, a 4% rise on the same period in 2010, as strong sales of corporate pensions, onshore bonds and unit-linked bonds were offset by a drop in demand for annuities. UK new business profit also rose slightly, by 1% to £194 million.

Sales of annuities dropped 17% to £133 million, as the end of a partnership agreement and the increase in the miniumum retirement age from 50 to 55 last year took their toll. Prudential said there had been a spike in annunity sales in the 50 to 55 age bracket in the run-up to the stage, boosting 2010 figures, and fewer early retirees in 2011.

Sales of onshore and unit-linked bonds increased by 15% and 11% respectively, to £127 million and £15 million, while corporate pension sales were 12% higher at £190 million, spurred by employers moving scheme members from defined benefit to defined contribution.

Prudential chief executive Tidjane Thiam (pictured) said the UK performance was in line with the group's strategy. 'We remain focused on our strengths in the individual annuities and with-profits segments. Our strategy of putting value over volume and our unique combination of competitive advantages allow us to continue to deliver market-leading returns.'