Lloyds Abbey Life profits surge
Thursday 13 February 1997
The record figures for the 12 months to December - the last as a separately quoted company - help explain the recent decision by Lloyds TSB, the group's parent, to spend pounds 1.7bn buying out the 37 per cent of the shares it did not then own. They also provide a foretaste of the record pounds 2.5bn profits the bank itself is expected to report in its own 1996 results due out tomorrow.
The LAL figures were driven by strong growth in unit trust and pension sales. Although LAL has taken a further pounds 13.7m charge for pension mis- selling, bringing the total provision to pounds 98.6m, Laurel Powers-Freeling, finance director, said: "People are more confident buying pensions again and I think that will continue." Economic conditions were favourable, while the industry had come through the bad publicity, she believed.
But the big growth in 1996 came in unit trust sales, which soared 56 per cent to pounds 505m, against a 5 per cent increase in regular premiums to pounds 127m and a 6 per cent uptick in single premiums to pounds 704m. Mrs Powers- Freeling said the unit trust performance was economically driven. "The whole industry has done well and in a time of rising equity markets, people are attracted to unit trusts," she added.
The biggest contributor to the increased profits was Black Horse Financial Services, the broker dedicated to selling to the bank's customer base which is shortly to be merged with the TSB life insurance operations. Profits there soared 32 per cent to pounds 160m.
Other strong performers in the year were Lloyds Bank Insurance Services, the broking operation, where profits climbed 44 per cent to pounds 133m and Black Horse Agencies, the estate agency chain. That returned to the black with a pounds 4m profit, reversing a pounds 9.5m loss last time. Abbey Life, the business aimed at independent financial intermediaries, saw its profits rise 12 per cent to pounds 167m.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Now we know whose fault it is if you end up being murdered in Thailand
- 5 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Benefits 'smart cards' plan revealed by Iain Duncan Smith to stop claimants spending welfare money on alcohol
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...