Just Retirement Group plc announces its third quarter interim management statement for the period ended 31st March 2014.
Highlights: -Q3 2013/14 individual underwritten annuity (IUA) sales at £288m, up 34% on Q3 2012/13 -Defined benefit de-risking sales £37m (Q3 2012/13 - £nil) -Record quarterly lifetime mortgage advances at £159m, up 128% on Q3 2012/13 -Current IUA volumes around half of pre-Budget levels, confirming the attractiveness to many retirees of a secure lifetime income in retirement
Rodney Cook, Chief Executive Officer of Just Retirement said:
“Our performance was strong in the third quarter of our financial year, helped by our success in the defined benefit (DB) de-risking segment, buoyant demand for lifetime mortgages (including £60m issued in a single block transaction), and given a lower comparative quarter for individually underwritten annuities.
Although operating conditions have become much tougher since the Budget, with sales at around half of pre-Budget levels, we are rapidly adapting our model to the new environment. I am confident that by continuing to offer customers a fairer deal in retirement we can deliver further shareholder value.
Our flexibility is exemplified by our recent launch of a one year fixed term annuity. This will help customers retiring now to make use of the new rules when they are introduced next year, and further product launches will be announced in due course. We expect distribution shifts to give us access to a growing proportion of retirees, particularly if the Government’s guidance concept is successfully implemented. We are also working hard to align capacity with demand and are today announcing a reorganisation to deliver some £14m of annual cost savings.
Financial intermediaries are still rightly advising many of their clients that a guaranteed income for life is often best retirement solution. Our underwriting skills mean we offer them competitive terms, whilst protecting against the risk of outliving their money.”
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