Prudential offsets annuities hit with bulk pension scheme deals

Kate McCann
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PRUDENTIAL posted a strong set of first quarter results yesterday, revealing it has offset the impact of changes to the individual annuities market by seeking new business from bulk annuity sales to corporate pension schemes.

The insurer revealed 29 per cent growth in new business in the first three months of the year, at £529m, with UK new business up 90 per cent to £91m from £48m in 2013 thanks to three large bulk annuity deals.

Tidjane Thiam, group chief executive, praised the company’s expansion and growth in the US and Asia.

On the UK annuities market Thiam said: “Prudential is committed to working closely with the UK government and regulators following the announcements made in the first quarter, to ensure that the new savings and investment system that emerges results in appropriate outcomes for British savers, who have been impacted negatively by a long period of exceptionally low interest rates.”