Sales at Friends Provident International, as the international operation is still known, fell to £51m during the first quarter – a 20% drop from £64m in the same period last year.
The company said that in Asia, market volatility had “negatively impacted investor sentiment” and “competitive pressure has increased” – although FPI does not specifically explain the competitive pressures which are impacting upon the business.
In Europe, FPI said “market conditions remain difficult, with Eurozone investor’s confidence remaining impacted by economic concerns”.
However, European tax and estate planning specialist Lombard – a business unit the company had identified in 2008 as one which did not “fit so comfortably within its strategy” – saw sales increase by 29% over the quarter, increasing from £34m in 2011 to £44m now. Friends Life said Lombard’s sales were particularly supported by a “significant proportion of large cases” – these having premiums in excess of €10m.
Andy Briggs, group chief executive of Friends Life Group plc said: “While the international division has faced some adverse operating and market conditions impacting volumes, Lombard has generated strong sales. The capital position remains strong and we are well placed for the opportunities emerging this year through auto-enrolment and RDR.”
Sales at AmLife meanwhile, the firm’s 30% owned Malaysian joint venture, have been “maintained at a comparable level to that achieved in the final quarter of last year” said Friends Life, and “continue to reflect the business’s focus on value over volume”.
The wider Friends Life group, however saw an increase in sales from £172m by the end of March 2011, to £197m to the end of March this year.
