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Just Retirement 59% annuity sales drop offset by boom in bulk business

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  • 10/11/2014
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Just Retirement 59% annuity sales drop offset by boom in bulk business
Sales of individual annuities at Just Retirement were down 59% compared to the same quarter last year, latest results show.

The provider said its overall sales for the quarter were 42% lower than last year but strong defined benefit de-risking through bulk annuity deals had somewhat offset the drop in individual underwritten annuities which brought in £129.3m.

It said bulk annuity sales stood at £25m, compared to £3.2m last year. It said this figure excluded a £75m deal announced last month but not completed in time for this quarter’s results. The results also announced another de-risking deal worth £76m set to complete later this week.

Fixed term annuity volumes of £20.2m fell only 1% compared to the same period last year. The business launched a one year fixed term annuity shortly after the Budget announcement in March.

Chief executive Rodney Cook said: “We believe these figures compare favourably with realistic expectations in the post-Budget world.

“Our defined benefit team continues to win new schemes, which will help us should demand for individual underwritten annuities weaken further in the run up to the pension reforms in April 2015.”

He added the firm’s success in the de-risking business gave him confidence the firm’s “new generation of post-Budget retirement income products will contribute to revenue momentum in 2015”.

Cook also said medical underwriting would be even more relevant to “those financial advisers with a duty to ensure that their customers do not outlive their savings”.

“Consistent with our October statement we remain on track to meet our full year sales expectations, despite difficult market conditions, particularly for individual underwritten annuities,” he said.

The results also said lifetime mortgage advances of £81m were made in the quarter, down 23% on the same period last year as a result of deliberate management action, with volumes being managed in line with total annuity sales.

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