Prudential plans UK platform push as part of £100m expansion

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Prudential is planning to move into the platform space as part of a drive to diversify its business, the company has told analysts.

UK chief executive Jackie Hunt (pictured) said the firm will broaden its retirement income proposition, launch ISAs and develop packaged products designed to fit into the platform space as part of the plans.

Platform solutions are “critical”, she said, although she rebuffed the argument the firm’s current lack of a platform is a hindrance.

She told investors: “If you look at money, it is moving onto platforms; it is where customers want to deal with us, it is the way in which our advisers want to deal with us.

“I do not think we necessarily need to own a platform. We need to have technology and products that can work on various solutions. I think the lines are actually blurring between wrap platforms for example and some of the policy administration systems.”

Moving into the digitally-enabled world is “important”, she added, and the way this happened has been rapidly changing over the last three or four years.

She acknowledged: “We have almost no way in which customers can interact with us on a digital basis.”

Prudential reported rising profits in the six months to June 2014, but said UK Budget pension reforms have created "significant disruption" in the life and annuity markets.

Products planned by the firm include a flexible drawdown product which incorporates the multi-asset PruFund.

The firm is also expanding its existing with-profits product suite, with ISA launches planned for 2015. Referring to the Budget reforms offering more flexibility for retirees, Hunt said: “The budget has made ISAs far more attractive products.”

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