News Release
28 April 2009
Friends Provident plc – Interim Management Statement including first quarter 2009 Life & Pensions new business
Maintaining our strong financial position
Corporate highlights
- Strong Insurance Groups Directive (IGD) surplus, estimated at £0.8 billion at 31 March 2009 (31 December 2008: £0.85bn)
- Further progress on cost savings, with £31 million run-rate of annualised savings at 31 March 2009 (31 Dec 2008: £25m)
- Agreement in principle to provide protection products in conjunction with Tesco Personal Finance, part of one of the world’s leading retailers
Trading highlights
- Total sales were down 40% reflecting the new strategy and tough economic environment
- UK individual protection sales strengthened in March with improvements in application counts through the quarter, but 8% lower than fourth quarter 2008 reflecting challenging housing market conditions
- UK corporate sales from new group pensions schemes resuming well, while overall sales of £72 million reflect impact of economic conditions on new business from existing schemes
- FPI sales 11% lower than fourth quarter at £37 million, continuing to develop presence in the Middle East while Hong Kong market is slow
- Lombard down 16% year-on-year as fewer large cases fall within first quarter
Trevor Matthews, chief executive officer of Friends Provident plc, said:
“In the current economic environment, trading continues to be tough. I am delighted to announce that in line with our strategy, we have significantly broadened our distribution capabilities with an agreement in principle to provide protection products with Tesco Personal Finance, a very exciting development. We are very much back in business in group pensions, winning 20 schemes in the quarter, and our capabilities have been recognised by a number of awards.
“Our capital position is strong, despite further adverse movements in markets this year, and our reserves for corporate bond defaults are the most prudent among our peer group. We are focused on improving the cash characteristics of our business, with further good progress on our cost reduction programme. I am confident that the actions we are taking will stand Friends Provident in good stead for the future.”
- Ends -
View the full release (PDF)
Notes to editors
- There will be a conference call for investors and analysts at 9.00am BST hosted by Trevor Matthews, CEO and Charles Bellringer, CFO. Dial in telephone number 020 3037 9157. A recording of this call will be available for 7 days by dialling:020 8196 1998 (access code: 3849752#).
- 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.
- Financial Reporting Calendar:
| Financial Reporting Calendar |
| Friends Provident plc Annual General Meeting & General Meeting |
21 May 2009 |
| Friends Provident Group plc 2009 Interim Results |
11 August 2009 |
| Friends Provident Group plc Interim Management Statement and Quarter 3 2009 New Business Announcement |
27 October 2009 |
| Friends Provident Group plc Quarter 4 New Business |
28 January 2010 |
| Friends Provident Group plc 2009 Prelim Results |
16 March 2010 |
| Friends Provident Group plc Interim Management Statement and Quarter 1 2010 New Business |
28 April 2010 |
| Friends Provident Group plc 2010 Interim Results |
10 August 2010 |
| Friends Provident Group plc Interim Management Statement and Quarter 3 2010 New Business |
28 October 2010 |
- Certain statements contained in this announcement constitute ‘forward-looking
statements’. Such forward-looking statements involve risks, uncertainties and
other factors, which may cause the actual results, performance or achievements,
from time to time, 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.
- For more information on Friends Provident including, photos, awards, fast facts, presentations, and media contacts please visit the media section at www.friendsprovident.com/media
- Awards won by Friends Provident so far in 2009:
SimplyBiz Awards 2009
Best Overall Service
Financial Technology Research Centre e-Excellence ratings Triple-E awards:
- Group Personal Pensions (Including Stakeholder)
- Group SIPP
- CIMP
- Life Protection
- Critical Illness
- Income Protection
- Menu
Professional Pensions UK Pensions Awards 2009
Defined Contribution Provider of the Year
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