News Release

29 April 2008

Friends Provident plc – Interim Management Statement including first quarter Life & Pensions New Business

Business highlights:

• First quarter new life & pensions business (on the APE² basis) increased by 11% to £247 million (2007: £223m) for the UK and International businesses
• On an ongoing basis (not including Lombard) new business increased by 11% to £223 million
  (2007: £201m)
• UK new business down by 2% to £165 million
  (2007: £169m)
• FPI new business up by 77% to £58 million
  (2007: £33m)
• Lombard new business up by 11% to £24 million
  (2007: £22m)
• F&C assets under management at 31 March 2008 £101.8 billion (31 Dec 2007: £103.6bn)
• Solid early progress on implementation of new strategy with a detailed update to be given with 2008 Interim results
• Processes underway for maximising shareholder value for all three wealth management businesses with good levels of interest

Adrian Montague, executive chairman of Friends Provident plc, said:

"The first quarter new business figures were satisfying, and we were pleased that FPI continues to show a strong and growing contribution to the overall result. We are making good progress on delivery of our strategic review, and look forward to providing a full update at the Interims. We continue to focus on our core strengths of manufacturing and administering life and pensions products in the UK and increasingly in international markets in order to achieve our objective of enhanced profitability and greater returns for our shareholders. There is much to be done, but we remain confident in our strategy and long-term prospects."

- Ends -

Full management statement and results (pdf, 143k)

For further information, please contact:

Nick Boakes 
Friends Provident plc +44 (0)845 641 7814

Chris Ford
Friends Provident plc +44 (0)845 641 7832

Vanessa Neill, Alex Simmons
Finsbury Limited +44 (0)20 7251 3801

Ref: I034

Notes to editors

1. This Interim Management Statement (IMS) has been prepared in accordance with section 4.3 of the Disclosure and Transparency Rules (DTR) and approved by the Directors on 28 April 2008. Included within the IMS are the first quarter new business results for Life & Pensions.

2. Headline new business figures are presented on the Annualised Premium Equivalent (APE) basis, representing annualised new regular premiums plus 10% of single premiums. The Present Value of New Business Premiums (PVNBP) basis represents new single premiums plus the expected present value of new business regular premiums.

3. Financial reporting dates 

4. Certain statements contained in this announcement constitute 'forward-looking statements'.  Such forward-looking statements involve risks, uncertainties and other factors, which, from time to time, may cause the actual results, performance or achievements of Friends Provident plc, its subsidiaries and subsidiary undertakings, or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such risks, uncertainties and other factors include, among others, adverse changes to laws or regulations; risks in respect of taxation; unforeseen liabilities from product reviews; asset shortfalls against product liabilities; changes in the general economic environment; levels and trends in mortality, morbidity and persistency; restrictions on access to product distribution channels; increased competition; and the ability to attract and retain personnel.  These forward-looking statements are made only as at the date of this announcement and, save where required in order to comply with the Listing Rules, there is no obligation on Friends Provident plc to update such forward-looking statements.

5. For more information on Friends Provident including, photos, awards, fast facts, presentations, and media contacts please visit the media section at http://www.friendsprovident.com/media