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Just Retirement reports 7% fall in underlying profit as annuity sales dip

Just Retirement’s underlying profit fell by 7 per cent year-on-year in the second half of 2013, the provider’s latest results reveal.

In the six months to 31 December 2013, Just Retirement reported an underlying operating profit of £47.3m, down 7 per cent on the £50.9m it reported in the second half of 2012.

The provider also saw a fall in annuity sales, which dropped by 14 per cent year-on-year. Sales totalled £687.8m in the second half of 2013, compared to £800.4m in the second half of 2012.

Just Retirement says this reflects the impact of the RDR and the introduction of gender neutral pricing.

Total new business sales were £906.1m in the second half of 2013, down by 4 per cent compared to £946.6m for the equivalent period in 2012.

Lifetime mortgage advances were up by 49 per cent year on year, from £146.2m in the second half of 2012 to £218.3m in the second half of 2013.

Just Retirement group chief executive Rodney Cook says: “The normal patterns of sales in the annuity market during 2012 were significantly disrupted due to the introduction of gender neutral pricing and the RDR. This has given both the market and Just Retirement very challenging comparative figures against which to measure 2013 performance, but these results are in line with our expectations.

“Notwithstanding this impact, we are confident that the long term growth drivers remain in place as the number of people in our target customer group looking for competitive retirement income solutions continues to grow.”

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