The Prudential suffered a drop in group profits of 15% in the first half of 2002. Group profits were down from £377 million last year to £332 million, due partly to a loss of £146 million on US bonds. Although the Pru's free asset ratio is down to 11% in June 2002, it is still financially stronger than other companies. Fund management subsidiary M & G saw sales rise by 7% from £579 million to £620 million. The Prudential's chief executive urges the government to align reviews such as the Sandler review and Pickering report to create a single package of measures to reduce the savings gap. He added that customers place an increasing emphasis on financial strength and trusted brand when making decisions about their investments, and that companies such as the Prudential are well placed to have bigger opportunities in the future if the government work closely with the industry and regulators.