25th Sep 2015 10:16
LONDON (Alliance News) - Just Retirement Group PLC and Partnership Assurance Group PLC on Friday both announced share placings in relation to the all-share merger between the two companies, while Partnership said it is trading in line with its expectations for the full year.
Just Retirement, the FTSE 250-listed retirement products company, and smaller rival Partnership Assurance said the two issues will raise a total of GBP150.0 million to back their proposed merger, under which they will combine under the name JRP Group PLC.
Just Retirement said the size and pricing of its placing and open offer will be determined following an accelerated bookbuilding process, to be run by Barclays Bank PLC, Deutsche Bank AG and Nomura International.
Just Retirement shares were up 2.4% to 176.00 pence on Friday.
Partnership, meanwhile, said it raised a total of GBP54.0 million from its issue, placing 40.0 million shares at 135.00 pence per share. Its shares were down 3.8% to 139.00 pence on Friday morning, the worst performer in the FTSE All-Share. Its issue was run by JPMorgan Cazenove and Morgan Stanley.
Partnership also provided a brief trading update on Friday, saying it is trading in line with its expectations and that it anticipates individual annuity volumes will grow in the second half of 2015. Defined benefit annuities trading remains "lumpy", the company said, though it is confident of hitting its GBP200 million new business premiums target for the year based on recent activity and its current pipeline.
The company said that as individual annuity sales increase and it hits its defined benefit annuity targets, its overall new business profit and new business margins should recover.
By Sam Unsted; [email protected]; @SamUAtAlliance
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