Insurer claims it is losing out to lottery
Tuesday 12 September 1995
The Exeter-based company said tough new rules on how it is allowed to sell pensions and insurance polices, together with a "feel-bad factor" were also responsible for the decline.
The result was a drop in new annual premiums from pounds 17.3m in the first half of 1994 to pounds 12.5m in the first six months of this year. The decline was worse for new single premiums, down 39 per cent from pounds 73.8m to pounds 44.7m in the same period.
Martin Jackson, the group finance director at London and Manchester, said: "I can't put my hand on my heart and say that the money has gone to the National Lottery rather than to London and Manchester.
"But we have got an awful lot of small-premium business. There is only so much disposable income to go round. It must be a factor for some of our industrial branch business."
The productivity of London and Manchester's 700-strong salesforce was badly dented by a new product disclosure regime since January. Staff are taking longer to explain products to prospective clients.
Some clients have been put off by the delays and refuse to buy policies.
Fear of unemployment also reduced people's willingness to start long- term savings schemes.
The continuing crisis in the housing market affected the company's estate agency chain, forcing a reduction in the number of branches from 85 to 78. But Mr Jackson added that the chain had grabbed a larger proportion of overall sales.
London and Manchester has also boosted annual premiums from its corporate pensions and private health insurance by 9 per cent to pounds 4.1m, partly through increased recruitment by firms with group policies.
David Hubbard, chairman, said: "The longer-term outlook must be positive, with the need for the private sector to complement the benefits of an over-burdened welfare state.
"In the immediate future, we expect little, if any, change in the difficult environment in which the life assurance industry finds itself today. It is unlikely that volumes of new business will be written at the levels of past years."
Dividends rose to 6.08p per share, which remained unchanged at 355p.
- 1 PlayStation and Xbox hacked by Lizard Squad
- 2 Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
- 3 The Grace Dent Christmas Questionnaire
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall set to push even more bargain-hunters online for sales
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...