Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Wary sales force collects fewer premiums for L&M

Paul Durman
Monday 11 April 1994 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

LONDON and Manchester, the life insurer, yesterday blamed reduced confidence in traditional life insurance policies for disappointing sales figures, writes Paul Durman.

Sales of so-called industrial business - where premiums are collected from the home - fell by a quarter last year to pounds 6.4m of new annual premiums.

Tom Pyne, chief executive, said the 1,200 members of L&M's home service sales force had lost confidence in their ability to recommend industrial business policies because they were 'aware of the regulators' attitude towards good advice'.

Regulators are nervous that these policies, mostly used by poorer customers, offer poor value when compared with modern policies, where contractual payments are made through a bank.

Total new annual business in 1993, down pounds 10m at pounds 32m, also reflected the legacy of problems with L&M's 200 firms of tied agents.

Despite lower sales, L&M's pre- tax profits jumped by 42.5 per cent to pounds 33.4m last year thanks to a pounds 9m improvement from its non-insurance businesses. Estate agency losses were reduced by pounds 2.1m.

A final dividend of 10.56p increases the total payout by 10 per cent to 15.68p a share.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in