Setting new standards - Friends Life
Setting new standards - Friends Life
Setting new standards - Friends Life
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
ANNUAL REVIEW<br />
CHAIRMAN’S STATEMENT GROUP CHIEF EXECUTIVE’S REVIEW ABOUT THE FRIENDS PROVIDENT GROUP UK LIFE & PENSIONS<br />
How we are making our strategies work<br />
Develop service excellence and<br />
leading products to create a positive<br />
customer experience<br />
Focus on core strategic<br />
markets targeting a leading<br />
position in these markets<br />
1 2 3<br />
Build strong and reliable<br />
distribution relationships<br />
We aim to deliver outstanding levels<br />
of customer and intermediary service,<br />
redefining industry <strong>standards</strong>. We plan<br />
to provide <strong>new</strong> levels of speed and<br />
accuracy, further enable self-service<br />
and improve contact management.<br />
We aim to grow market share in each of our<br />
target markets in a profitable manner by<br />
constantly enhancing our overall proposition.<br />
Our current core strategic markets are<br />
corporate pensions and individual protection,<br />
but we intend to build our presence in the<br />
wealth management and group protection<br />
markets, continue to deliver profitable<br />
growth in the individual pensions market<br />
and investigate <strong>new</strong> opportunities for<br />
growth in the post-retirement market.<br />
Independent financial advisers continue to be<br />
our primary source of business. However,<br />
following depolarisation we have secured,<br />
and continue to secure and develop,<br />
significant additional distribution alliances<br />
with banks, building societies, retailers and<br />
intermediary groups, providing us with a<br />
diversified source of intermediated business.<br />
2006 Key points<br />
• Maintained our Five Star service<br />
ranking for third consecutive year.<br />
• Numerous awards and positive survey<br />
results for our products and services.<br />
• Major internal service-related change<br />
programme (the 6 Star programme)<br />
embedded and aligned<br />
to our vision.<br />
• Continued to embed Treating<br />
Customers Fairly principles.<br />
2007 Priorities<br />
Maintain our Five Star service ranking.<br />
• Continue our major internal change<br />
programme that aims to re-define<br />
industry <strong>standards</strong>.<br />
• Continue to embed Treating<br />
Customers Fairly principles.<br />
• Improve our Customer Impact<br />
survey scores.<br />
2006 Key points<br />
• A number of large corporate<br />
pension schemes secured.<br />
• New online services developed<br />
for employers, intermediaries and<br />
pension scheme members.<br />
• Individual protection market is<br />
competitive but <strong>new</strong> business<br />
volumes from distribution agreements<br />
increasing.<br />
• Announced intention to develop a<br />
wrap capability to build our presence<br />
in the wealth management market.<br />
• Accelerated growth plans announced.<br />
2007 Priorities<br />
• Enter the wrap market and re-define<br />
our wealth management proposition.<br />
• Grow large pension scheme portfolio<br />
and increase focus on scheme<br />
retention and member services.<br />
• Develop protection proposition to<br />
target <strong>new</strong> segments and extend<br />
market reach.<br />
• Investigate the post-retirement<br />
market for <strong>new</strong> growth opportunities.<br />
2006 Key points<br />
• 11 significant <strong>new</strong> distribution agreements<br />
secured for, predominantly, protection and<br />
corporate pensions business.<br />
• Distribution agreement secured with<br />
Greenbee (John Lewis Partnership), our<br />
first such retail agreement.<br />
• Decision taken to exit the appointed<br />
representative channel and focus on<br />
directly-authorised intermediaries.<br />
• The emergence of wrap platforms is<br />
re-defining the distribution of wealth<br />
management services.<br />
2007 Priorities<br />
• Seek to secure further distribution<br />
agreements.<br />
• Strengthen relationships and<br />
accelerate business volumes with<br />
major distributors.<br />
Financial Adviser Practiv service ranking<br />
2006<br />
★★★★★<br />
2005<br />
★★★★★<br />
2004<br />
★★★★★<br />
2003<br />
★★★★<br />
This ranking is the result of an extensive<br />
independent survey of IFAs undertaken<br />
annually. The survey rates life and pensions<br />
providers covering various aspects of service<br />
on a scale of:<br />
★★★★★<br />
★★★★<br />
★★★<br />
★★<br />
★<br />
Excellent<br />
Good<br />
Average<br />
Poor<br />
Very poor<br />
UK <strong>Life</strong> & Pensions market share<br />
2006 5.5%<br />
2005 5.2%<br />
2004 4.3%<br />
2003 4.2%<br />
This shows our market share of UK <strong>Life</strong> &<br />
Pension <strong>new</strong> business sales. The statistics are<br />
collated by the Association of British Insurers.<br />
2005 has been restated to 5.2% from 4.7% to<br />
reflect a change in definition. A summary of<br />
the market is given on page 13 and a summary<br />
of our trading performance is given on page 16.<br />
Contribution from <strong>new</strong> business<br />
2006 £108m<br />
2005 £64m<br />
2004 £58m<br />
This measures the profit that we make from<br />
writing <strong>new</strong> business and is discussed further<br />
on page 17. It is measured on the EEV basis.<br />
Figures for the years prior to 2004 are not<br />
comparable with the EEV basis.<br />
14 <strong>Friends</strong> Provident Annual Report & Accounts 2006