Bright Grey and Scot Prov rebound in Q4 but annual sales fall 10%

Bright Grey and Scottish Provident have rebounded slightly in the final quarter of 2010 but new business still fell 10% during the year.

Although business protection improved by 25% for the protection providers, parent company Royal London warned that 2011 would be another tough year for the economy.

New business at the pair fell to £329m (on a present value of new business premiums basis) from £370m in 2009.

The figures improved over the final quarter after posting a 19% fall nine months through the year.

Royal London put the fall predominantly down to the mortgage market being ‘in the doldrums with no sign of a significant improvement.'

However, it singled out one sector as performing increasingly well: "Business protection is an increasingly important segment of the market and both brands have been active with dedicated marketing support.

"This has resulted in an increase in new business of almost 25% compared with 2009," it said.

Overall, the mutual society saw total life and pensions new business increase of 26% to £3.104bn, from £2.461bn in 2009.

Commenting on the results, Mike Yardley, group chief executive at Royal London, said: "To announce a strong increase in new business when the economic backdrop has been so poor is a very satisfactory performance.
"It is testament to the success of our strategy and the quality of our businesses.

"2011 will be another difficult year for the economy, but I am confident that our focus will help ensure continuing strong performance," he added.