Friends Provident directors have bought heavily into the life group but they couldn't stops its share price falling today while the rest of the sector flew ahead.
Chief executive Trevor Matthews bought 764,632 shares at 65.4p each. Yesterday he was also awarded of 681,327 shares at nil cost as compensation for the loss of his long-term incentive arrangements with previous employer Standard Life. One third of the deferred share award will vest on 30 July 2009 and the remaining two-thirds will vest on 30 July 2010.
To encourage him still further, Matthews has also been granted a nil cost award of up to 4.171m shares under a Turnaround Plan. They vest over a five-year period, subject to performance criteria.
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Also buying yesterday were independent director Robin Phipps, who acquired 70,000 ordinary shares at 69.6p and chairman Sir Adrian Montague who bought 77,079 shares at 61.3p.
On Tuesday, Friends warned it expects new business in early 2009 to be below 2008, while also setting aside £217m for possible defaults in its corporate bond portfolio. The life group also cut its dividend and said 2009 will be a tough year.
Pre-tax losses from continuing operations rose to £871m from £113m last time as took additional charges of £264m for 52% owned F&C Asset Management (FCAM) and £154m for losses attributable to minority interests in the F&C Commercial Property Trust.
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