Sales of UK life and pensions have slumped across the board as consumers limit insurance and savings to focus dwindling disposable incomes on debt.
Fitch Ratings compared first half-year sales for 2008 with this year across six UK companies. The present value of new business premium fell 24% from £31bn to £23bn for Aviva, Friends Provident, Legal and General, Lloyds banking Group, Prudential and Standard Life. AXA and AEGON, which report sales on an annual premium equivalent (APE) basis, took tumbles of 17.7% and 22.5%, respectively. "Sales have fallen across the market as consumers have cut back on purchasing insurance and savings, in order to channel more of their disposable income into reducing their mortgage burden," says David...
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