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Friends Provident Post 157m Profits Print E-mail

TEP - 24 August 2010

Friends Provident UK life and pension sales rose 6% in the first half of the year, helping to boost the groups's pre-tax profits to £157m.  

Life sales climbed to £203m in the six months to 30 June, up from £191m for the same period in 2009.Total H1 sales were up 42% at £458m on an APE basis, compared to £322m for the same period of 2009.UK pre-tax profits on an IFRS basis were £128m, up from £36m for H1 2009. This contributed to pre-tax profits of £157m across the group, up from £29m for the same period in 2009. 

Increased annual management charges from improved fund values, and the impact of fixed interest investment variances in respect of its annuity book, contributed to the gain. 

In its with-profits fund, the company says it has extended the degree to which certain assets are hedged and reduced the fund's exposure to corporate bonds following the improved market conditions of late 2009 and early 2010.

Friends Provident's life and pensions business generated gross operating cash of £79m in the six months to 30 June, up from £35m last year. 

Cash and capital management is a key focus of Friends Provident to support parent company Resolution's consolidation strategy. 

Lombard sales have improved significantly on 2009, up 187% to £135m, compared to £47m last year.Friends Provident says this reflects increased investor confidence and management action to spread the sales activity more evenly throughout the year.

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