10th Nov 2014 07:54
LONDON (Alliance News) - Just Retirement Group PLC posted a big drop in sales in the first quarter on Monday after the group saw its individually written annuity volumes plummet following the pension reforms announced in the spring in the UK Budget.
Total sales in the quarter to the end of September dropped 42% year-on-year, the FTSE 250-listed company said, with individually written annuity volumes dropping 59% in the wake of the pension reforms introduced in Chancellor George Osborne that removed the effective requirement for individuals in the UK to buy annuities to provide income in retirement.
The company generated GBP25 million in defined benefit sales in the quarter, including a GBP75m deal announced in October with an undisclosed client. Under such agreements Just Retirement takes on the obligations of a company's pension plan for a fee.
Lifetime mortgage advances were down 23% year-on-year in the quarter on the back of action taken by the management of the company, with volumes managed in line with total annuity sales, it said.
The group said sales volumes post the first quarter are in line, except for higher defined benefit sales, and said it maintains its outlook for the year, "despite difficult market conditions", Chief Executive Officer Rodney Cook said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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