Commenting on the results Rodney Cook, Group Chief Executive, said:
“This was a year of extraordinary highs and lows. The successful completion of our IPO and the strong momentum our model delivered in the first nine months of the year were overshadowed by the effect of the Budget reforms on our final quarter. The fact that we still delivered record results speaks volumes for the quality of our business and our people.
The extraordinary challenge of the Chancellor’s reforms demands an extraordinary response, and I look forward confidently to the launch of our new customer propositions next year. Our development programme is on track, and I believe that we have used our outstanding distribution relationships to ensure that we will be in the vanguard of the reformed secure retirement income market. In the meantime, we have protected the profitability of the current generation of products by swiftly implementing £14m of annual cost savings.
The success of our DB de-risking launch shows our continuing ability to develop new products, which benefit both customers and shareholders. Strong profitable growth prospects are emerging.
Demographic trends mean that over time there will be increasing amounts of money coming into the UK at- and in- retirement market over the coming decade. Despite the short-term setback of the Budget reforms, we therefore remain confident that secure income for life, backed by our expertise in medical underwriting, will be increasingly valuable to customers who want to ensure they don’t outlive their savings.
Our job now is to ensure that we capitalise on our Intellectual Property by offering products which are compelling. I am confident that my team will rise to the challenge, and that we will work harder than ever to deliver shareholder value.”
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