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Just Retirement to launch long-term care annuity as sales slump

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Just Retirement’s year-on-year annuity sales dropped by more than 25 per cent during the first three months of 2013, from £313.2m to £230.6m, as the provider was hit by regulatory upheaval at the end of 2012.

The enhanced annuity specialist’s latest new business figures show total sales were down by 21 per cent, from £381.8m in the first three months of 2012 to £300.4m this year.

While equity release sales increased moderately during the period, from £68.6m to £69.8m, annuity sales fell by 26 per cent.

The provider says the slow-down in new business was “expected” and came as a result of the introduction of gender neutral pricing and the RDR.

The provider has also confirmed it plans to enter the long-term care market “during the next few months”, initially with an immediate needs annuity product.

In addition, Just Retirement has agreed deals to provide individually underwritten annuities to Origen Financial Services and NFU Mutual.

Just Retirement chief executive Rodney Cook says: “Financial intermediaries have achieved a significant transformation but are continuing to adjust to operating in a post-RDR world. We continue to support their transition as they make refinements to their market propositions. 

“We are pleased to see that activity levels have increased but are not expected to return to normalised levels until the mid-year. 

“I am pleased to announce Just Retirement will be entering the long term care market during the next few months, initially with an immediate needs annuity solution. Further details will be published before the launch date.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Well won’t Permia be chuffed. £230 million in 2009 – how much now? They have been itching to sell for a couple of years – after they had to pull the New Look float. Now it looks as if they will be tied in for some time yet.

  2. Michael Slater 22nd May 2013 at 6:47 pm

    Harry, I wouldn’t jump to any conclusions just yet. What the author failed to mention was what the open market was doing pre and post RDR, coupled with their half year sales and market share. My interpretation on Permira’s stance would be quite different…

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