View more on these topics

Just Retirement posts £9.2m loss despite surge in DB deals

A surge in defined benefit derisking deals has not been enough to stave off Just Retirement posting a £9.2m pre-tax loss for the second half of the year.

The company made a pre-tax profit of £26.5m over the same period in 2013.

The enhanced annuity provider continues to be hit by the fallout of the pension freedom reforms, with new business sales of individual annuities plummeting 58 per cent from £645.8m as at 31 December 2013 to £271.2m at the end of last year.

Fixed term annuity sales are down just 4 per cent from £36.6m to £35.3m, which Just Retirement attributes to the launch of its one-year fixed term annuity contract in the wake of last year’s Budget announcement.

Defined benefit sales, including two derisking deals for DB schemes of £75m and £76m, jumped from just £5.4m to £354.7m.

The company says lifetime mortgage sales have been “managed down” in line with the fall in annuities business, with a 27 per cent drop in sales from £218.3m to £159m.

Overall total new business sales have fallen 9 per cent from £906.1m to £820.2m.

Recommended

Rob-Reid-MM-Peach-700.jpg
5

Robert Reid: Pensions guidance cannot exist in scripts alone

Paul Lewis’ recent column in Money Marketing provoked a lorry load of comments and reinstated the debate on financial journalists remaining exempt from competence requirements. I am sure many journalists could confirm their competence with minimal preparation but, for some, it could be a barrier that would impede rather than empower them. I recall being asked […]

Johnson
2

Govt urged to default savers into deferred annuities

Influential think-tank the Centre for Policy Studies says the Government should launch a default retirement solution to stop people running down their savings too soon in the wake of the Budget reforms. Under the proposal, 55-year-olds’ pension pots would be defaulted into an inflation-linked pension, essentially an extension of auto-enrolment, known as “auto-protection”. Report author […]

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment