11th Mar 2016 07:52
LONDON (Alliance News) - Just Retirement Group PLC and Partnership Assurance Group PLC on Friday said they remain confident of achieving at least GBP40.0 million of cost savings through the GBP1.6 billion merger of the life insurers.
The pair said they expect their merger to complete in April, with the aim of creating JRP Group PLC, as they separately reported earnings. The merger was driven by changes to the UK pensions landscape, which removed the effective requirement to buy individual guaranteed income annuity products.
Just Retirement said it swung to a first-half pretax profit of GBP26.1 million in the six months ended December 31, from a GBP9.2 million pretax loss in the corresponding period of 2014, as new business sales rose by 50% to GBP1.23 billion. Its first-half new business sales rose by 50% to GBP1.23 billion.
Swinging to a full-year pretax loss of GBP16.5 million in 2015, from a GBP24.1 million pretax profit in 2014, Partnership said it was hit by one-off costs, particularly the new Solvency II rules for insurers across the EU, and lower sales volumes.
Partnership's operating profit fell to GBP40.0 million in 2015, from GBP64.0 million in 2014, as total new business premiums declined to GBP631 million from GBP791 million.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.