Clive Bolton, director, annuity business and equity release at Aviva, said that the firm was in the sector for the long-term as it believed the market would continue to grow.
He explained: “We believe in providing our customers with the widest possible range of retirement solutions and see equity release as an integral part of our offering. We will work to ensure that consumers continue to have access to good-value products that are appropriate to their individual situations. We will continue to see an increase of equity release being used as part of retirement planning as the equity in retirees’ property becomes an increasingly large part of their assets to fund retirement.”
Simon Little, managing director of equity release specialist Home & Capital, said it was not surprised by the exit.
He said: “It is entirely predictable that groups providing a wide range of financial products such as Prudential will make changes in the constituents of their product portfolios, so their withdrawal cannot come as a total surprise.”
Meanwhile, Safe Home Income Plans (SHIP), expressed its disappointment over the decision but re-assured customers that other SHIP members were still able to offer equity release products.
Andrea Rozario, director general of SHIP, added: “We firmly believe that there is a strong market for this product – now and in the future. We hope that as the fallout from the credit crunch eases and liquidity returns to the equity release market, that Prudential as well as other big financial brands will consider adding equity release to the portfolio of products they provide.”
