Prudential's Q1 new business results

Our new business results for the first quarter of 2009 of APE £180 million were down 6 per cent - a good performance in extremely challenging and volatile market conditions.

Highlights of our Q1 results:

Total retail sales were down 7 per cent to APE £179 million.

Individual annuity sales of APE £58 million were 6 per cent lower than for the same period last year. However, our internal vestings book continued to perform strongly, with sales rising by 22 per cent to APE £39 million.

Sales of with-profits bonds were up 72 per cent to APE £31 million on the first quarter of 2008. This growth reflects an increasing desire among consumers for a more cautious investment approach through products that provide a level of protection from the impact of downturns in the market.

Corporate pensions sales of APE £53 million were down 13 per cent, compared with the first quarter of 2008.

Sales of offshore products of APE £7 million were down 63 per cent, reflecting difficult market conditions and our focus on margin over volume.

Sales of lifetime mortgages were down £2million to APE £3million. We have maintained our pricing discipline in this market and reduced our loan-to-value ratio in response to the continuing uncertainty about the future direction of house prices. We believe that this is the correct stance to take until market conditions improve.

PruHealth continues to make good progress and now covers more than 200,000 lives.

Overall, we have been disciplined in our approach to the market over the first quarter of 2009, delivering a very strong sales performance relative to the competition. This reflects the investment we have made in our products, the power of our brand and performance, and the continued progress we are making in our chosen distribution channels.

Read the full News Release.