Insurer's UK sales up by a fifth

Insurer Friends Provident said today that an increase in business from independent financial advisers had helped it boost UK sales by a fifth.

Friends said strong volumes from IFAs in group pensions had more than offset subdued sales from the employee benefit consultants sector.

The rise helped to lift first-quarter total UK sales to £88m (€129.6m) from £74m (€109m) beforehand.

The group said total new life and pensions annual premium equivalent (APE) - or new regular premiums plus 10% of single premiums – rose 41% to £129m (€190m).

Total APE from its international business increased by 132% to £41m (€60.4m).

The insurer said good progress in its investment business and an encouragingly resilient performance in the protection sector had also contributed to healthy growth in the UK.

Chief executive Ben Gunn said the upbeat figures should not necessarily be taken as a guide to the year ahead, given a less predictable flow in UK pensions business and the seasonality of business at recently acquired Luxembourg-based insurer Lombard International.

“Nevertheless, we continue to expect to grow our international businesses and to increase market share in the UK in 2005,” he said.