View more on these topics

Partnership banks on US launch and DB deals to counter Budget blow

Partnership is hoping expansion into the US market will turn around its fortunes following the devastating impact of the Budget pension reforms, a trading update ahead of an investor meeting reveals.

The enhanced annuity provider says the launch of a new “care annuity” for the US is “progressing well”, while individual annuity sales are “well below 50 per cent” of pre-Budget levels.

It also says its pipeline of bulk annuity deals for the defined benefit pensions market are “strong and growing” but warns business will “remain lumpy”.

Partnership chief executive officer Steve Groves says: “In our presentation to investors and analysts this morning, we will be providing an update on the business and the various initiatives, which we are pursuing to diversify and grow the business, including our defined benefit proposition and the market opportunity for a care annuity in the US.

“Our discussions with potential US partners are progressing well and a reinsurance based market entry strategy has now been selected.”

The firm cut over 100 members of staff in the wake of the Budget and says it is on course to make £21m of savings, with the cost of the restructure to hit around £3m.

In the days following the March Budget, the insurer’s share price fell 27 per cent.

In September, Money Marketing revealed Partnership is also planning to boost its platform capabilities as a result of the Budget.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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