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			Prudential's UK retail insurance operations comprise three businesses: Retail IFA, Prudential Retail Financial Services and Prudential Annuities. Retail IFA Our Retail IFA business produces and sells Scottish Amicable and Prudential branded products, including the market-leading Prudence Bond through Independent Financial Advisers (IFAs). Underlying statutory profit (before re-engineering costs) from our Retail IFA business increased by 13 per cent to £99 million in 1999 while new business achieved profit increased by 53 per cent to £174 million. This strong growth in new business achieved profit has been driven by increased sales of investment bonds, predominantly Prudence Bond, with sales of £1.9 billion in 1999. Central to this growth has been the further improvements that we have initiated in customer service. During the year we have given customers a choice of fund manager and re-engineered the distribution process to give a stronger match between the specialisations of each IFA and Scottish Amicable's sales force. The choice of fund managers was launched under the 'Power to Choose' banner and has been widely welcomed by IFAs. It is a concept which competitors are now following. In addition we have also developed a new sales contact centre which will lead to even higher levels of customer service. We are continuing to expand operations at our Craigforth site near Stirling, where the total number of staff employed is now close to 2,300. During 2000, this will be increased further as we transfer the administration of M&G's life and pensions business from Chelmsford. Scottish Amicable's high standards of customer care were recognised in the 1999 Financial Adviser Awards where it received 'five star' awards for customer service in both the Life and Pensions and Investments categories. We were also voted 'most admired IFA company' by readers of Financial Adviser. Prudential Intermediary Division and the IFA Service Centre were again voted best providers by the Bradford and Bingley Building Society, their largest supporting IFA. In addition, several products were recognised with industry awards, including Prudence Bond, Home Purchaser (our mortgage endowment product) and our Long-Term Care Bond. During 1999, we refocused our marketing efforts and developed a campaign which targeted both consumers and financial advisers, raising brand awareness and stressing the importance of professional financial advice. Our activity included television sponsorship, national press advertising, radio commercials and London Underground advertising. Our investment in technology will enable continued improvements to customer care, under both the Scottish Amicable and Prudential brands, and will increase the cost-effectiveness of the business adding to shareholder value. These developments include an extranet giving IFAs the latest information on products and services. In addition, new business processing developments will allow IFAs to administer pensions on-line. We continue to expand the range of products designed to meet the changing needs of IFAs and introduced a 'Stakeholder-friendly' group personal pension product on 1 March 2000.