Not a good way to round off a tricky couple of weeks for Prudential. The UK life assurer, which remains beset by takeover rumours following larger rival Aviva’s approach earlier this year, on Thursday announced disappointing new business sales in the UK for the first three quarters, down 4 per cent on last year.
Lower sales of bulk annuities, where competitors, including several former Prudential employees, have weighed in, contributed to the fall.
The life assurer was hit by three senior management departures in a matter of days last week, losing Mark Nancarrow, chief executive of internet bank Egg, Andy Briggs, who was effectively in charge of the Pru’s UK annuity business and then Kieran Coleman, FD of the UK life arm.
New Egg chief executive Ian Kerr, the former head of retail banking at HBOS, will have his work cut out. Prudential said on Thursday that the worsening consumer credit environment in the UK meant it now expects Egg to report a loss in the second half.
Prudential has previously maintained that the sluggish performance in its domestic operations should not be taken as a reason to combine with Aviva. But with these numbers, and with French insurer Axa free to bid again as of October 13, speculation of a Pru takeover is unlikely to go away.