L&G deal ups pressure on Pru boss

INSURER Legal & General has struck an exclusive distribution deal for its savings products on Britain's High Streets that could put yet more pressure on Prudential chief executive Jonathan Bloomer.

Bradford & Bingley is to sell a full range of L&G long-term savings and investment plans from January after deciding against using a 'multi-tie' set up with several insurers.

Prudential cited the shake-up likely to come from the new multi-tie regime, allowing companies to source products from several providers, as one of the main reasons for its recent shock £1bn rights issue.

Bloomer expects to pick up more market share as opportunities arise but insiders at L&G said today's deal showed it was 'too simplistic' to suggest new business will automatically come up for grabs.

L&G already has similar exclusive deals with Barclays and Alliance & Leicester and expects to generate sales of £40m a year from the Bradford & Bingley deal.

Bloomer has come under fire from a group of shareholders - reported to include L&G's own fund management arm - upset at the rights issue, and is now fighting to survive.

He has never been able to shake off the fallout from his failed attempt to buy US rival American General three years ago. His reputation has also been hit by last year's dividend cut and this summer's botched Egg auction.

Bloomer is currently in Asia as analysts tour Prudential's Far Eastern division. A Pru spokeswoman said: 'We believe he is the right man for the job.'

L&G refused to comment today.