Prudential's 2009 Q3 Results
We are pleased to share with you our new business results for the third quarter of 2009 showing another strong relative performance despite market conditions.
UK Highlights
- Retail sales for the first nine months of 2009 of APE £531million were down 13 per cent, a resilient performance in challenging market conditions and one which was consistent with our continuing focus on balancing profitable new business with capital conservation and cash generation.
- Total sales of APE £534 million were 28 per cent down on the same period last year, although the 2008 figure included a large bulk annuity buy-in transaction (Cable & Wireless) in the third quarter which has not been repeated this year. During 2009, we have chosen not to write any of the new business bulk annuity and back-book opportunities available to us, reflecting our disciplined approach of only participating in transactions that meet our stringent return on capital and profit requirements.
- Individual annuities - down 21 per cent on the same period last year to APE £164 million, impacted by a reduction of 13 per cent in average case sizes. The reduction was a direct consequence of depressed asset values and the decision by some customers to defer retirement.
- Our with-profits bonds sales of APE £101 million were up 36 per cent on the same period in 2008. The growth reflects the attractiveness of Prudential's with-profits offering, including in particular PruFund, in which over £1 billion has been invested across our retail savings product range in the last 12 months.
- Individual pensions sales of APE £34 million were 36 per cent higher than in the first nine months of 2008. Sales of the Flexible Retirement Plan, our factory-gate priced individual pension product, have continued to grow with sales in 2009 of APE £15 million up 117 per cent.
- Income drawdown sales for the nine months of APE £7 million were up 40 per cent on the same period last year.
- Equity release volumes have fallen 58 per cent as we maintained our strict pricing discipline.
- Although corporate pension sales of £156 million were 18 per cent lower than for the first nine months of 2008, growth into existing schemes has remained healthy. Prudential has secured more than 20 new corporate schemes in 2009 and is provider to over 20 per cent of FTSE 350 companies.
Prudential UK has continued to focus on optimising the balance between writing profitable new business and capital conservation.
