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Annuity sales to double in 3 years, says Just Retirement

The UK annuity market will almost double in size over the next three years, Just Retirement expects.

The specialist provider says according to a recent study by Watson Wyatt, it expects annuity sales to rocket, and says enhanced annuities will grow their market share from their current 11 per cent.

The group’s third quarter new business figures, to March 31, 2008, show that its total group sales are up 12.1 per cent on the corresponding period of the previous year, from £164.8m to £184.7m.

Total group sales during the nine months were up 20.5 per cent from £474.4m to £571.7m.

Just Retirement says a highlight of the period was its link with Bradford & Bingley, growing its equity release distribution through B&B’s 197 branches nationwide.

Its equity release mortgage advances grew 52.9 per cent during the nine months, from £72.6m in the same period last year, to £111.0m this year.

Just Retirement chief executive Mike Fuller says: “Just Retirement was a sponsor of the Watson Wyatt ‘At Retirement Study’ the most extensive analysis of its kind to date in the UK.

“Based on the information contained in the study, the individual annuity market is likely to grow from £11bn in 2007 to £20bn within the next three years. Additionally, we are confident that the share of the market taken by enhanced and impaired annuities will continue to grow from the 11 per cent level achieved in the final quarter of 2007, boosted by impending regulatory initiatives in regard to the operation of the open market option, in the context of the FSA’s Treating Customers Fairly.”

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