Friends Provident reports slump in profits for 2007
11-03-2008
Insurer Friends Provident said its new strategy is "encouraging" but profits for 2007 declined sharply on higher costs.
Pre-tax profit dropped to £16 million on a European embedded value basis from £509 million last year.
A £46 million loss was recorded under IFRS accountancy measurements.
The underlying economics of the company's 2007 UK trading were "not good enough" Friends Provident said in a statement.
Sir Adrian Montague, executive chairman, said: "We are fully focused on implementing the strategic review to gain the benefits from it swiftly and efficiently.
"We look forward confidently to returning the company to profitable growth."
The insurer also announced that Jim Smart, its chief financial officer, will be leaving the company in the summer.
Friends Provident said in January it will re-focus on the life and pensions industry and sell off wealth management unit Lombard as well as its 52 per cent stake in asset manager F&C.
The board is recommending a final dividend for 2007 of 5.30p per share, bringing the total 2007 dividend to 8p per share, a two per cent increase over 2006.
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