View more on these topics

Pension reforms hit Partnership annuity sales

Partnership saw individual annuity sales plummet in the first six months of the year as half-year profits dropped by over 40 per cent.

Announcing its half-year results today, the enhanced annuity specialist revealed sales of individual annuities totalled £334m in the first six months of the year, a 41 per cent fall from £590m during the same period a year earlier. This followed radical reforms announced by Chancellor George Osborne in this year’s Budget.

Defined benefit bulk annuity sales were £37m in H1, a 236 per cent increase on the same period of 2013, when sales were £11m.

Care annuity sales grew 28 per cent from £28m to £36m, while protection sales were flat at £2m.

Year-on-year operating profits were down 44 per cent, from £59m to £33m. The firm says a cost saving plan implemented following the Budget will save £21m against the anticipated 2015 cost base.

Partnership chief executive Steve Groves says: “We continue to see significant disruption in the individual annuity market as a result of the Budget, however, despite this uncertainty, we are continuing to focus on a long term strategy, based around our core competencies, which is intended to deliver a stronger and more diversified business over time.

“This includes extending our defined benefit de-risking proposition, developing new products to meet the expected ongoing customer need for longevity insurance and progressing opportunities to leverage our unique dataset internationally.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment