Prudential's UK sales picking up

PRUDENTIAL today became the second life assurer to distance itself from Standard Life's troubles this week by boasting of its own financial strength and reporting an upturn in UK sales.

Two days after Aviva swept away fears about its financial health, Prudential chief executive Jonathan Bloomer forecast he would pick up business as customers look for stronger firms. 'We expect to benefit from savers choosing those companies with clear financial strength,' he said.

He added that while the spate of regulatory reviews in the life sector was creating some uncertainty, consumer confidence was returning into the UK after a torrid 2003.

Figures today showed Prudential's new life and pension sales were down 16% at £1.6bn last year on the industry-standard annual premium equivalent basis, with a 19% slide in Britain.

But fourth-quarter sales in Prudential's domestic market were up 10% on the prior three months while sales of the group's with-profits investment bond through independent financial advisers rose 32%.

New business in Prudential's fast-growing Asian business was up 16% during 2003 at £555m while retail sales at Prudential's US arm Jackson National Life were down 10%.

Speculation that Prudential may need to raise capital to protect its balance sheet grew last week when it said it was close to completing the sale of its 79% stake in online bank Egg. The group today said discussions were continuing.