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Just Retirement posts £30m loss post-pension freedoms


Just Retirement has moved from profit into loss for the year to the end of June, its first full financial year of accounts since pension freedoms was announced.

The firm recorded a pre-tax loss of £29.6m, a dramatic swing from 2013/14 profits of £92.8m.

The result was driven by plummeting annuity sales, which fell by 56 per cent from £1.1bn to £478m.

Retirement income sales overall also fell 9 per cent to £1.1bn, down from the £1.2bn seen in 2014, with capped drawdown sales slumping 34 per cent from £73.7m to £48.7m.

Total retirement sales fell 10 per cent from £1.3bn to £1.1bn, while total new business sales were down 17 per cent from £1.7bn to £1.4bn.

But Just Retirement also saw a spike in sales of defined benefit derisking solutions, where sales climbed more than five-fold from £92.1m to £608.9m.

As a result Just Retirement has increased its sales estimate for DB derisking from £300m to £400m for the first half of the 2015/16 year.

The provider also says it is seeing increased enquiries for individual annuities, with Q1 annuity sales now expected to rise by 25 per cent on the previous quarter.

It expects the merger with Partnership, announced last month, to generate £40m of cost synergies.

Just Retirement group chief executive Rodney Cook says: “This is our first full-year of results since the Budget 2014 pension reforms, and I hope our resilient performance will not be forgotten amid the excitement of the proposed merger with Partnership Assurance Group.

“Our response to the pension reforms has largely enabled us to replace lost individual guaranteed income for life business with DB derisking premiums.”



Just Retirement marketing director joins L&G

Legal & General has hired Just Retirement director of marketing Andy Humphreys for the insurer’s individual retirement business. Humphreys will serve as marketing director for the division and joins after eight years at Just Retirement, which earlier today announced a deal to merge with fellow annuity specialist Partnership. Prior to joining the firm, he held […]

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Just Retirement/ Partnership merger ‘could hit annuity competition’

The proposed merger between Just Retirement and Partnership will be bad news for savers if annuity pricing competition is diminished, advisers warn. Earlier today, the two firms confirmed a deal had been agreed between the respective boards which will see Just Retirement chief executive Rodney Cook lead the combined business. Partnership chief executive Steve Groves […]


Just Retirement and Partnership to merge

Just Retirement and Partnership, the two insurers whose share prices were savaged by Chancellor George Osborne’s radical annuities overhaul, are to merge. The deal, announced this morning on the London Stock Exchange, is expected to result in Just Retirement shareholders owning roughly 60 per cent of the combined business, with Partnership shareholders controlling the remaining […]


Just Retirement scraps fixed-term annuities for new drawdown customers

Just Retirement is not offering fixed-term annuities to new flexi-access drawdown customers due to falling demand from advisers, Money Marketing can reveal. The provider offers fixed-term annuities through capped drawdown arrangements, meaning the product will only be available to existing capped drawdown customers. Following the freedom and choice reforms, all new drawdown customers will be […]

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By Josh Ausden, Head of Client Investment Strategy, Neptune Short-term yen strength has hurt the Neptune Japan Opportunities Fund but recent events have only added weight to our conviction that the Bank of Japan will act to ease policy, boosting multinationals’ profits and weakening the yen. In recent weeks the performance of the Japanese stockmarket […]


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