News
Worldwide long-term savings new business, three months to 31 March 2004
05 May, 2004
- Worldwide long-term savings new business sales up 6% to £654 million (2003: £623 million) on an APE* basis
- Worldwide total long-term savings new business sales up 4% to £3,914 million (2003: £3,751 million)
- Worldwide new business contribution up 13% at £160 million (2003: £142 million), with new business margin of 26.4% (2003: 23.6%)
- Total Continental European life and pension sales up 4% to £307 million (2003: £294 million) on an APE basis
- Investment sales doubled on first quarter 2003 to £393 million
* Annual premium equivalent (APE) is the UK industry's standard measure of new regular premiums and 10% of single premiums.
All growth rates quoted are at constant rates of exchange.
Richard Harvey, group chief executive, commented:
“This is a pleasing start to 2004, with total sales and the group margin both ahead of the same period last year.
“The UK market remains tough, but we continue to focus on value rather than volume. We believe we have continued to improve our competitive position, as customers and IFAs recognise the value of our scale, brand and capital strength.
“We saw steady growth in continental Europe, including strong performances in France and the Netherlands. Spain and Italy’s comparative results reflect the strong growth in sales in the first half of last year, generated by intensive marketing campaigns. We remain highly confident of the potential for these markets.
“Investment sales doubled to nearly £400 million compared to the same quarter last year, indicating that there is some evidence of consumer confidence returning - although this is more pronounced in some markets than others.”
| Financial highlights | 31 March 2004 | 31 March 2003 | Local currency growth |
|---|---|---|---|
| Total life and pension new business sales | £3,521m | £3,548m | (1%) |
| Total investment sales | £393m | £203m | 92% |
| Worldwide long-term savings new business sales | £3,914m | £3,751m | 4% |
| Life and pensions new business sales on an APE basis | £607m | £601m | 2% |
| Investment sales on an APE basis | £47m | £22m | 113% |
| Worldwide long-term savings new business sales on an APE basis | £654m | £623m | 6% |
| New business contribution - life and pensions business | £160m | £142m | 13% |
| New business margin before cost of capital | 26.4% | 23.6% | |
Enquiries:
Analysts/Investors:
Philip Scott, group executive director +44 (0)20 7662 2264
Steve Riley, investor relations director +44 (0)20 7662 8115
James Matthews, head of investor relations +44 (0)20 7662 2137
Media:
Hayley Stimpson, director of external affairs +44 (0)20 7662 7544
Sue Winston, head of group media relations +44 (0)20 7662 8221
Alex Child-Villiers, Financial Dynamics +44 (0)20 7269 7107
There will be a conference call today for wire services at 7:45am (UK time) on +44 (0)20 7784 1005. This conference call will be hosted by Philip Scott, group executive director.
There will be a conference call today for analysts and investors at 9:30am (UK time) on +44 (0)20 7984 7576. This conference call will be hosted by Philip Scott, group executive director.
Replay will be available for two weeks until 19 May. The dial in number for replay is +44 (0)20 7784 1024 and the pass code is 194599.
