Friends Provident makes £46m loss

Friends Provident recently announced job cuts

Insurance company Friends Provident has unveiled a £46m annual loss, hit by a one-off £440m accounting charge.

The loss for 2007 compares with a profit of £400m for 2006.

Friends, which in January announced plans to reduce its workforce by 600 jobs, said it was continuing with a strategic review of the company.

The firm is at the centre of takeover speculation after US private equity firm JC Flowers said at the start of the year that it may make an offer.

Director departure

"We would be prepared to discuss a formal approach if one was made to us," said Friends chairman Adrian Montague.

"All I can say is we have not had a formal approach from Flowers."

Friends had planned to merge with insurance rival Resolution, but talks collapsed last year.

The company also announced on Tuesday that finance director Jim Smart is to leave the firm in the summer.

Its £46m annual loss was reported under IFRS accountancy rules.

Under the separate EEV measurement, Friends made a profit of £16m.