This week, the firm revealed it was closing its subsidiary, Life Trust Insurance, as a result of difficult market conditions.
Life Trust says it failed to raise the capital to keep LTI afloat, after lower than expected sales of its longevity income plan since launching in January 2008.
The closure will see 21 redundancies, leaving just four staff. It says it will be “incubating” products with a view to re-entering the market when conditions improve.
Chief executive Andy Briscoe says: “We believe that this is the right decision for the planholders and the most responsible course of action.”
The Retirement Adviser head of retirement planning Nick Flynn says: “This deal sounds like a bargain, considering how much you could have lost if you were invested over the past six months.”
Hargreaves Lansdown head of pensions research Tom McPhail says: “This is a dignified retreat from the battlefield.”