Just Retirement, a provider of enhanced annuity and impaired life annuity products, has seen its’ sales dip but accelerated takeover talks. Sales fall 8.6% over the past year, according to half-year results.
Annuity sales were primarily responsible for the fall in new business figures, though Just Retirement says it has opted to focus on margins rather than quantity in the increasingly competitive annuity space, and it stated that it is involved in ongoing takeover talks, and says it will make further announcements on a potential offer in due course.
Total sales for the final six months of last year were £353.9m, down from £387m in the same six month period of 2007. Sales of annuities fell 13.1% to £272.1m, while their equity release business grew, up 10.7% to £81.8m.
IFRS underlying profits were up to £7.4m after tax, up 54.2% from £4.8m in the final six months of 2007, leading to them to comment that their selective pricing policy has enabled them to protect pension annuity margins in the face of increasingly strong competition, albeit at a cost of a small, temporary reduction in sales.
And, the recent reduction in annuity rates across the market has had a positive impact on the firm’s business levels early this year. They are currently experiencing historically unprecedented levels of annuity applications which will positively impact fourth quarter sales.
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