View more on these topics

NU and Canada Life bid to fill BRS annuity gap

Norwich Union and Canada Life are planning to plug the gap in the enhanced annuity market left by Britannic Retirement Solutions&#39 closure to new business last month.

The move comes as GE Life raises the minimum sum for annuity purchases from £5,000 to £10,000.

Canada Life is looking at an enhanced and impaired annuity launch in the second quarter of 2004 while Norwich Union&#39s impaired life annuities could be on the market later next year.

BRS&#39s withdrawal has left the enhanced annuity market dominated by GE Life and Prudential.

GE Life&#39s increase follows Legal & General&#39s rise in its minimum from £1,000 to £5,000, leaving Standard Life the only product provider taking open market business under £5,000.

Advisers warn that the lack of competition in the market – with Standard Life rarely topping the annuity tables – makes recommending additional voluntary contributions increasingly difficult to justify.

Canada Life retirement income manager Peter Carter says: “We are looking at a launch in both impaired and enhanced annuities in the second quarter next year. This will be the big market.”

Norwich Union head of retirement product development Simon Warsop says: “We already offer severely enhanced annuities and non-enhanced annuities and we are looking at the area in between.”

Bates Investment Services head of pensions James Jones-Tinsley says: “GE Life&#39s move shows the lack of competition since BRS closed to new business.”

William Burrows Annuities director Billy Burrows says: “With such a shortage of product providers taking small funds, you have to question whether it remains good advice recommending AVCs.”

Recommended

NU hikes protection premiums

Norwich Union is increasing its premiums on mortgage life insurance with guaranteed critical illness by an average of 8 per cent and on term assurance with guaranteed critical illness by an average of 12 per cent. It says that existing policy holders and pipeline business will not be affected and puts the hike down to […]

DSF products pose problem on menu

The FSA believes the main obstacle to the menu payment system could be overcome if direct salesforces stopped selling their own products and sold products from other providers. FSA head of retail projects David Severn says commission equivalence has been a stumbling block to finalising menu details but it would not be a serious impediment […]

Lincoln launches structured product

Lincoln Financial Group is launching a new IFA product. The Staged Investment Plan will be linked to 11 trusts managed by fund managers: Goldman Sachs Asset Management and Delaware International Advisers.

Cofunds claims 54% of supermarkets&#39 Isa sales

Cofunds claims it now has over half of the market for Isa sales by fund supermarkets. It says it has a 54 per cent share of Isa business, a big rise from 37 per cent for the second quarter. The firm says its assets have risen by 25 per cent to £1.4bn in the last […]

Auto enrolment – so far so good?

Jamie Clark – Business Development Manager The recent report from the Pensions Policy Institute demonstrates the sheer scale of auto-enrolment so far and what we can expect in the future. We’ve pulled out the key information to save you reading the full report. Auto enrolment in numbers Sources: Pensions Policy Institute, The Future Book: Unravelling […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com