Long-term savings provider Hansard said continued instability in the Eurozone weighed on new business sales and, it warned, damaging market forces show few signs of abating.
As at 30 June assets under administration fell to £1m for the year ended June 30th 2012 from £1.2m before.
In 2011 investment income came in as a £112.9m profit but, for the year ended June 30th 2012, it recorded a £145.7m loss.
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Single premium new business sales more than halved to £51.3m compared to £109.1m the year before. Regular premium new business sales increased to £124.4m during the period from £112m earlier.
"New business levels in the first two months of the financial year reflect the cautious stance of policyholders and are significantly below the level of the corresponding period in the prior year. However the board expects new business to gather momentum in the second quarter on the back of new product launches and also more positive investment market conditions."
IFRS profit after tax fell to £11.2m during the year from £16.5m.
Chief Executive Leonard Polonsky said: "In line with our new business strategy we continued to invest in regular premium flows and to focus on growth markets."
He cautioned: "Single premium business remains constrained by market volatility and the instability in the Eurozone that shows few signs of abating. While the economic environment remains challenging, we have a robust strategy in place and are successfully developing the business in the growth markets of the Far East and Latin America."
Hansard has recommended a final dividend payment of 8p, unchanged from last year.
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