Retail IFA Business

		“Our strategy ensures that we provide the products and services that IFAs need and will ensure that we strengthen our market position.” Roy Nicolson, Chief Executive, Scottish Amicable.

The Retail IFA business comprises the full range of life, pensions and investment products under the Scottish Amicable brand and Prudential Intermediary Division, producer of the market-leading Prudence Bond.

During 1998 the Retail IFA business contributed 41 per cent of Prudential’s total new business sales in the United Kingdom having increased weighted sales by 92 per cent over 1997. These encouraging results provide us with the platform for further growth in 1999. Operating profit for the year of £92 million was some 28 per cent ahead of prior year. This increase reflects both increased Prudence Bond volumes and a full year contribution from Scottish Amicable.

One of our key objectives for 1998 was to differentiate ourselves from our competitors by launching innovative products into the market whilst also developing our current products, with the major focus being on the Scottish Amicable brand. It was therefore encouraging that three of our products – Scottish Amicable’s Home Purchaser, Prudential’s Prudence Bond and Scottish Amicable European’s Long Term Care Bond – received top ratings in industry awards.

Our customer focus campaign also enjoyed success in the annual Financial Adviser service awards – voted for by our IFA customers. Scottish Amicable regained its five star award in the Life and Pensions category: an important milestone in the campaign to provide first class customer service. Prudential Intermediary Division and the IFA Service Centre were voted best providers by the Bradford and Bingley Building Society, their largest supporting IFA.

Furthering our commitment to Craigforth, plans have now been unveiled for a new office to house the additional 500 staff who will be needed to meet our ambitious targets.

Within Prudential Intermediary Division, IFA Direct has gone from strength to strength with responsibilities handed from the branches to the centre during the year. Our Reading staff, currently in six separate buildings, will be moved into a single location in the near future, which will further aid their efficiency.

Scottish Amicable’s customer focus – building strong relationships with advisers – has played a key role in its success.

During 1998 we have carried out in-depth research into the requirements of our IFA customers. Following detailed surveys through independent companies we are developing a revised customer service strategy covering the Craigforth operations. The key aim of this strategy will be to ensure that we retain our five star service rating and increase our overall levels of customer service.

Our research has shown strong support from IFAs for a choice of investment managers. We have therefore launched a new range of products which offer customers a number of fund management options. This choice will also be extended to our proposed ISA product.

In Scottish Amicable Life International we aim to increase our long-term core business in the UK and to increase our presence in the German IFA market by building on our considerable success in 1998 where we now have over a three per cent market share of unit linked business. We are also keen to expand into other European markets.

Overall this has been a highly successful year for the Retail IFA business. The challenge for 1999 is to build on that strength, expand our product range and distribution and improve still further our levels of customer service.

Retail IFA Sales of Single Premium Prudence Bond (£m)		Retail IFA Operating Profit (£m)

For more information, please visit Scottish Amicable’s website: www.scottishamicable.co.uk