 Prudential still sees growth potential in Asia and the US |
Insurance giant Prudential has sounded a cautious note for the UK savings market after reporting a 16% drop in full-year new sales. New business sales for insurance products in 2003 fell to �1.6bn ($2.92bn), from �1.92bn.
Prudential said "uncertainty surrounding the continuing government and regulatory reviews" had dented its outlook for the first half of 2004.
But the UK group said it was optimistic about growth in Asia and the US.
Weaker UK market
The majority of Prudential's overall revenue is generated outside Britain.
The group's lacklustre tone contrasted with that of larger UK rival Aviva, which started the sales reporting season earlier this week with a robust market outlook for the year.
Prudential said the fall in new sales came largely on the back of the company's exposure to the struggling with-profits market in the UK, as well as poor institutional sales in the US.
Analysts had forecast sales of between �1.570bn and �1.643bn, with a consensus of �1.601bn, a figure measured on an annual premium equivalent basis - a standard measure used to iron out volatility.
Meanwhile, Prudential - which is Britain's second largest insurer - said talks over the possible sale of its 79% stake in loss-making online bank Egg were continuing.
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