Prudential to close corporate pensions new business team

The provider says it does not want to deploy resources pitching for business it believes is unsustainable. The closure of its dedicated new business team will mean the loss of five front line and four support staff.

Prudential says it will still accept new business although it will be more selective about the schemes it tenders for. Tenders will now be dealt with by other members of its 80-strong corporate pensions teams.

It says it remains committed to the group pensions sector, which makes up around 30 per cent of its new business sales, but that the new scheme element of its new business only represents 5 per cent of this figure.

Prudential spokesman Darragh Leeson says: “We have not pulled out of the group pensions market – we are still very much open for new business. But we will be targeting our resources more selectively. We think that some of the pricing that is being offered at the moment is unsustainable.

“We are still committed to corporate pensions and shall continue to be investing in this area in the coming years.”

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