Friends Provident down on accounting changes

News Article - 09 August 2006
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Profits at life insurer Friends Provident have fallen significantly, following the introduction of new accounting practises.

In interim results for the first six months of 2006, the company announced that group profits before tax fell by 77 per cent on the same period a year before. Friends Provident earned £48 million between January and June of 2006, a significant fall on 2005's £206 million.

The £46 million figure came with the introduction of International Financial Reporting Standards (IFRS), and reflected a write-down of 45 per cent at F&C Asset Management.

Despite the figures, group chief executive Keith Satchell remained bullish about the firm's results.

"Friends Provident is now a major player in the UK market and well positioned for continued strong organic growth with considerable opportunities available," he said, adding that the firm saw "excellent growth of 158 per cent in net UK retail funds flows on the back of improved market sentiment and increased marketing activity".

"We remain confident that all three of our businesses will continue to deliver profitable long-term growth," he further stated.

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