Key Retirement Solutions has taken a majority stake in fixed-term annuity provider Primetime Retirement.
Backed by private equity firm Phoenix, Key is primarily focused on the equity release market.
The firms would not disclosed the commercial terms of the agreement or the precise stake taken by Key, although it is understood to be variable based on performance and other factors.
Primetime will move its sales unit from Bristol to Key’s offices in Preston. Seven sales staff have opted to take redundancy following the move.
The firms say the tie-up will allow Primetime to develop more flexible annuity products post-Budget.
Primetime chief executive Kim Lerche-Thomsen says: “This deal represents a significant forward step in the development of our business. Key Group is an exciting and successful brand to be involved with and it will help launch our products to a new audience of advisers and consumers.
“The retirement income and retirement lending markets are set to become more closely entwined as a result of the expected pension changes being introduced next year. The combined strength of our respective brands, plus our heritage in pioneering new product solutions for clients and their advisers, will give us a unique competitive edge.”