Financial services group Friends Provident (LON:FP.) has reported total sales of £458m on an annualised premium equivalent (APE) basis for the half-year to end-June, up 42% on the same period of 2009. International sales, excluding Lombard, of £120m were up 43% with confidence returning across the regions (end-June 2009: £84m).
Lombard sales were up 187% to £135m (2009: £47m), reflecting increased investor confidence and management action to spread the sales activity more evenly throughout the year. UK sales were up 6% period on period to £203m (2009: £191m) while IFRS based operating profit before tax was £157m (2009: £29m). Life and pensions operating business gross cash generation of £79m (2009: £35m). Dividends of £100m were paid by Friends Provident Group to Friends Provident Holdings (UK) Limited in the period, with further dividends totalling £235m paid up to FPH on 16th August 2010. Estimated IGD surplus at 30th June was £1bn.
Chief executive, Trevor Matthews, said: "I am pleased to report strong momentum in our business with first half sales up by 42% overall, a strong increase in both profits and cash flow and a significant reduction in operating costs in the UK business. Confidence in Friends Provident is high as we progress towards completion of the acquisition of the majority of the AXA UK's Life businesses, a key step in our consolidation strategy. I am delighted by the positive reaction to the announcement of the transaction, especially from our key distributors. We continue to invest for the future in our core propositions such as the Next Generation Solutions corporate platform and in our successful International businesses."
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