Just Retirement has reported a 10.9 per cent increase in pre-tax operating profit for the six months to 31 December 2012 as annuity sales surged.
The enhanced annuity specialist’s interim results, published today, show pre-tax profit rose from £40.3m in the second half of 2011 to £44.7m in the corresponding period during 2012.
Sales of annuity policies increased 54.1 per cent, from £519.4m to 800.4m, boosted by an increase in adviser business ahead of the gender pricing and RDR deadlines in December.
Equity release mortgage advances increased by 6.2 per cent, from £137.7m to £146.2m.
Just Retirement chief executive Rodney Cook says: “Total annuity sales for the half year exceeded £800m for the first time.
“These high sales volumes have benefited from increased total market activity by financial advisers to bring forward business ahead of the December dates for gender based pricing and the Retail Distribution Review. We expect volumes in the next quarter will be lower than these unusual market levels.
“Equity release advances maintained strong growth to reach record levels of £146.2m, an increase of 6.2 per cent compared to the same period last year.
“Demand from those people approaching and in-retirement to improve their retirement income continues to fuel growth in the sector.”