Just Retirement Group is pleased to announce that its Underwritten Defined Benefits
De-risking Division has completed contracts on a significant transaction, which demonstrates both the potential of this market and the strength of the company’s team. We believe the deal is the largest of its kind and represents £36.5m of single premium income for the Group.
In addition, Just Retirement Group has either completed or expects to complete a number of other smaller transactions, such that it now expects its total premium income from defined benefits de-risking in the financial year to 30th June 2014 to be at least £80m.
Rodney Cook, CEO of Just Retirement, commented:
“At our half year results in February, we flagged the potential for more defined benefits transactions and we are pleased to be announcing our largest underwritten transaction to date representing £36.5m of single premium income. We believe our intellectual property equips Just Retirement well to compete strongly and we see significant scope to write further business of this type.
Although it is very early days, our current trading suggests that the Budget has had a material effect on individually underwritten annuity (IUA) volumes. As financial advisers and customers come to terms with the new environment we are optimistic that large numbers of them will continue to secure a guaranteed lifetime income in retirement, particularly if the new guidance concept is effectively implemented. As today’s announcement demonstrates, we are enjoying some success in the defined benefit market, partially offsetting IUA market weakness. However, given the high degree of uncertainty in the near term IUA outlook, the 7% growth in full year sales that we flagged at interims is no longer appropriate. We will update the market further on 12 May when we release our Q3 IMS.”
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