Friends Life suffers group risk sales slump

Group protection business at Friends Life dropped by more than half in the third quarter of the year while individual business slipped slightly compared to the previous three months.

Overall protection new business at the provider hit almost £80m in the first three quarters of the year.

Comparisons over longer periods of time are difficult given the parent company Resolution's purchases of Axa Life and Bupa Health Assurance (BHA) to join its original brand, Friends Provident.

In the three months to the end of September individual protection sales were down to £20.5m, from £21.9m in Q2 and £22.1m in Q1 (including BHA trading results).

However corporate business took a more significant hit with new business of £3.3m in Q3 compared to £7.3m in Q2 and £4.5m in Q1, again including BHA.

Results compared to the same point last year have grown noticeably due to the acquisitions taking place.

Individual business reached £64.5m (£31.5m at Q3 2010, up 105%+) with group sales rising 344% to £15.1m from £3.4m.

In both cases, the 2011 figures include BHA and Axa Life data, while 2010 only includes Axa Life.

Friends Life said the results were in-line with the performance in the first half of 2011.

"The individual protection market has remained flat and set against a challenging economic backdrop, whilst there continues to be a competitive market for group protection," it said.

"The launch of a single integrated individual protection proposition referred to above will impact the fourth quarter of 2011 with some reduction in total volumes expected as two, currently offered, market products are withdrawn.

"The Group continues to work with key distributors with a new single tie arrangement agreed with Connells, one of the UK's largest estate agencies and property service groups, which will come into force during 2012.

"The arrangement also sees Sesame Bankhall Group and Connells entering into a long-term partnership involving a range of services including regulatory protection for Connells' 450 mortgage consultants operating across its UK estate agency offices," it added.