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Just Retirement rejects variable annuity move

Just Retirement chief executive Mike Fuller has ruled out a move into variable annuities although he says the firm could join other insurers in launching a fixed-term product.

Last week, Just Retirement’s directors recommended an offer by private-equity firm Permira to acquire the company for £230m.

The deal involves a £25m cash injection but Fuller suggested that the investment would not be spent on setting up a variable plan.

He says: “I do not think there is a big enough need for such products and certainly not at the cost they have been over the last couple of years. Therefore, I do not see Just Retirement rushing into that product segment in the near future.

“To me it seems more of a talking point than a real customer need, other than for a very small segment of the population.”

But Fuller suggests Just Retirement could at some stage follow LV= in offering a temporary annuity to rival Living Time.

He said: “I can see no reason why we would not do something like that if we felt it was going to be a large enough market segment.”

LV= is understood to be working on the IT functionality for the product and Aviva is also considering a launch.

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