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.