Prudential retail sales climb 10%

Prudential's UK retail sales rose by 10% during 2008, while overall sales for the group climbed 5%.

The firm says its retirement-led strategy and international presence has helped its performance during a turbulent year.

UK Retail sales climbed to £803m during 2008, while group sales climbed 5% to £3.02bn, though the weakness of sterling meant local currency growth was just 1%.

Individual pension sales saw strong growth, up 6% to £38m in 2008, while corporate pensions performed poorly, up just 1% to £249.

With -profits bond sales increased by 139% to £98m, and Prudential says the product will continue to grow as consumers seek to protect themselves from market downturns.

Prudential saw particularly rapid growth for its factory-gate priced individual pension, the Flexible Retirement Plan, which saw sales climb 123% to £11m.

Individual annuity sales remained flat at £280m, with sales through intermediaries falling slightly as investors put off selecting a retirement income while investment markets remain depressed.

Equity release lending grew by 50% in 2008, while income drawdown options saw a 167% increase in sales.

Looking to the future, group chief executive Mark tucker says: "We expect 2009 to be a challenging year and for global financial markets to remain difficult. In this environment we have taken a prudent approach to our 2009 plans, balancing new business with cash generation and capital conservation as our key drivers.

"We will continue to position ourselves to take advantage of any upturn in the market and, with a clear focus on the interests of our shareholders, we will evaluate carefully any strategic opportunities that arise from market dislocation."

Contact: John Bakie, Tel: 020 7484 9805, e-mail: John.Bakie@incisivemedia.com