Enhanced annuity provider, Just Retirement, has a cloudy future as a backer wants out. Their shares, in line with those of other insurers, have seen big drops, with price falls of 78% in the past 12 months and 54% in the past 3 months. After a bad last quarter growth prospects are unlikely to improve over the next year.
Invesco, its third largest external investor, has bought an additional 58,805 shares in the company at 62.14p. Analysts Panmure Gordon changed their recommendation on Just Retirement from hold to buy following the announcement. Lazard Asset Management sold a total of 51,265 shares, with 35,000 going at 69p and 16,265 at 67.87p.
One bidder could be private equity group Cinven, which bought Just Retirement’s smaller rival Partnership Assurance in June for £160 million. Sources at Partnership say its board has rejected any idea that Cinven would bid for its rival.
Panmure Gordon said that some of the larger UK life assurance companies, including Legal and General, Aviva and Prudential could also be interested in bidding for Just Retirement, given their interest in developing enhanced annuities.
