11th May 2016 07:29
LONDON (Alliance News) - JRP Group PLC, the result of a merger between annuities providers Just Retirement and Partnership Assurance, on Wednesday said it made a solid start to 2016.
Chief Executive Rodney Cook, who previously held the same role at Just Retirement, said Partnership's individual annuity sales held up well in the quarter. Given that the merger didn't complete until after the end of the quarter, Cook said the combined entity would have had a "steady" first quarter.
"I remain positive about the future, and we reiterate the outlook comments we made at our recent interim results. The long-term future for the defined-benefit market looks buoyant, while the improving trend in the individual Guaranteed Income for Life market appears to be continuing," Cook said in a statement.
Our focus remains very clear: we will continue to deliver on business as usual, whilst executing the merger cost synergies of at least GBP40 million. Now the merger is effective we can offer even better value to customers, investors and business partners, and I look forward to demonstrating our potential as JRP," he said.
Total new business sales achieved by Just Retirement in the nine months to March 31 were 33% higher than the corresponding period a year earlier, despite a "quiet start" to the new calendar year, as anticipated, JRP said. Just Retirement's defined benefit de-risking sales in the nine months were up 66%, though sales were down 54% in the the first quarter of 2016 year on year.
Just Retirement's combined guaranteed income for life and care sales were 2% higher in the nine months than in the corresponding period a year earlier. Lifetime mortgage advances by Just Retirement represented an increase of 44% on the corresponding nine months a year earlier, slightly above the 25% of retirement income sales targeted.
Partnership Assurance delivered a "solid start" to the new calendar year, despite a quiet quarter for defined benefit sales, as expected.
Partnership's guaranteed income for life sales rose 41% compared with the first quarter of the 2016 calendar year, almost offsetting the expected fall in defined benefit business after the "busy" fourth quarter of 2015. Overall, JRP would have enjoyed "broadly flat" guaranteed income for life sales on a combined basis during the first quarter, which the company said suggests "some stabilisation" of the market.
Shares in JRP Group were up 1.2% at 139.80 pence on Wednesday shortly after the market open.
By Samuel Agini; [email protected]; @samuelagini
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