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.”