Equity release advances were slightly down in Q4 but, on an annual basis, were a record for the Group at £162.9 million (£159.0 million). During the year, the Group posted two quarters in which advances topped £40m, the first time in its history.
This performance is in the contrast to that of the market which, as recent SHIP figures highlighted, fell by 22% in total in the three months to June. As a result, Just Retirement has improved its market share of the total UK equity release market to 19%, another record for the Group.
Commenting on the fourth quarter sales figures, Mike Fuller, CEO of Just Retirement, said: "Whilst equity release mortgage advances in the final quarter show a year-on-year decline, this is against a relatively difficult current background, impacted by valuation issues in the wider housing market and a strong comparative quarter. Our performance here, up 17% on the previous quarter and a full year record for the group, is a very creditable result in the circumstances.”
Sales of enhanced annuity policies in the quarter were £191.2 million, a record for the Group showing a 33% year-on-year gain and 50% growth on the previous quarter. This increase allowed full year sales to show only a slight reduction on the previous year, totaling £590.8 million (£604.5 million).
The Group estimates that it recorded a 6% share of the total UK annuity market in the fourth quarter, its highest for over a year. Just Retirement's share of the market over the 12 months to June 2009 is estimated to be 5%.
Growth was achieved without a material increase in annuity rates over the period. Rather, the Group believes that competition within the enhanced annuity market, previously based on price, was tempered by the need to preserve capital. This is a reflection of the strategy Just Retirement adopted at the end of 2008.
