Flows were 10% higher than the equivalent period last year, with strong sales in Asia and the UK offsetting weaker continental European performance.
North Asia remained Friends Life’s largest market for new business. The region, which is serviced through the company’s Hong Kong branch, generated sales of £55m; up from £48m in the first half of 2010. Flows also rose in South Asia, from £11m to £13m.
Sales in the Middle East increased, by £1m, but the strongest growth in percentage terms was in the UK, with new business flows doubling from £5m to £10m. “The market remains attractive as mass affluent investors continue to seek tax advantageous savings solutions outside the UK,” the firm said.
Flows in the rest of Europe fell, however, from £18m to £16m. The group pointed to “challenging” conditions in the short term for its Overseas Life Assurance Business (OLAB) in Germany.
Friends Life’s international businesses comprise:
- Friends Provident International, an Isle of Man-based company manufacturing unit-linked regular contribution savings and single premium bond products;
- OLAB, the overseas branch business of Friends Provident Life Assurance;
- Financial Partners Business, a German distributor of OLAB unit-linked pensions business;
- a 30% interest in AmLife Insurance Berhad, a Malaysian life insurance company.
