Accounting changes hit Friends Provident
Market punishes life insurer as accounting policies take their toll
Life Insurer Friend’s Provident saw its share price drop 6% to 175p as its
interim pre-tax profits fell 77% as a result of accounting assumptions at the
The company said the fall was a result of changes to its accounting, which
last lifted profits but failed to have a similar impact on the current period’s
IFRS pre-tax profits at the group were down 77% to £48m, reflecting a 45%
write-down at F&C Asset Management. Operating profits for the half-year were
9% lower at £247m.
Chief executive Keith Satchell maintained that the results were good despite
the dip in profits.
‘If you take out the positive one-offs for last year then the underlying
trend is upwards,’ he told the FT.
Read more about the impact of IFRS on insurers here