LONDON (Alliance News) - Friends Life Group Ltd Tuesday reported a fall in value of new business in the first nine months of its financial year, largely due to the reduction in retirement income value of new business.
In a statement, Friends Life reported GBP94 million of value of new business from continuing operations in the first nine months of 2014, compared with GBP123 million in the corresponding period last year. Retirement income value of new business fell to GBP40 million from GBP64 million.
However, corporate benefits annual premium equivalent rose by 14% to GBP465 million, while protection annual premium equivalent rose by 11% to GBP70 million. Group annual premium equivalent for the first nine months from continuing operations rose to GBP690 million from GBP670 million.
Chief Executive Andy Briggs said the group made good operating progress during the third quarter, highlighting "sales momentum" in the UK division fuelled by its corporate benefits and protection businesses.
"Development of our new retirement proposition is on track, we have further enhanced our customer engagement, and I look forward with confidence to the launch of the new propositions and the new retail platform in April next year. I am also encouraged by the progress we are making in our International division, with the benefits of the roll out of the new platform and product and sales initiatives coming through," Briggs said in a statement.
The CEO also welcomed the previously reported disposal of Lombard and the beginning of the associated GBP317 million share buyback.
"With the improvement in dividend coverage from this return of capital along with the encouraging sales momentum, we remain well placed to continue to generate cash and make progress towards 1.3 times dividend cover," Briggs said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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