Zurich Life's bond business hit by RDR

clock

Zurich Life has blamed a drop in its bond business on the impact of the Retail Distribution Review (RDR) - as it reveals a 42% fall in operating profits.

Zurich Life's Annual Premium Equivalent (APE) - where sales are estimated by taking the value of regular premiums - shrank by 14% to £651m due to the negative impact of the RDR on the firm's retail bond business, it said. The closure of Zurich's Unitised Fixed Rate Bond (UFRB) product also played a part, although the performance was better than expected as the APE was boosted by its Corporate Savings (ZCS) business attracting new schemes in the second half of 2013. Underlying profitability remained strong, Zurich said, due to the positive impact of year on year expense savings and the...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Wealth managers

St James's Place results lay bare cost and charging challenges against market tumult

St James's Place results lay bare cost and charging challenges against market tumult

'Structural opportunity' for advice industry

Hope Coumbe
clock 28 February 2024 • 3 min read
SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

Open-ended structures 'have to work'

Valeria Martinez
clock 01 December 2023 • 2 min read
M&G launches full PruFund range on Wealth platform

M&G launches full PruFund range on Wealth platform

‘Greater flexibility and wider choice’

Valeria Martinez
clock 22 May 2023 • 1 min read
Trustpilot