Zurich is tendering for a partner to replace Prudential in a single-tied annuity-outsourcing contract, Money Marketing understands.
It has been passing maturing pension customers to Prudential for four years. It is believed Pru pays around 3 per cent for the business. The firm also provides annuities to Royal London’s customers.
Skandia has a similar deal to channel clients to Legal & General for an annuity but says it is “actively trying to expand its range”, particularly in the enhanced annuity sector.
Aviva and Canada Life are believed to be actively seeking for business in this market.
Zurich would not comment on the issue of a tender but a spokeswoman says: “Currently, we offer our maturing pension customers the option to take a Zurich annuity or to take an annuity with Prudential through our exclusive annuity partnership. They also have the option to source an annuity from the open market.”
Origen was slammed this month when Money Marketing revealed the firm was to pass corporate annuity clients with pension funds worth under £50,000 to Legal & General and Partnership Assurance from March.