Just Retirement to enter long term care market

Robyn Hall

May 21, 2013

The lifetime mortgage provider will initially enter the market with an immediate needs annuity solution and will confirm further details of its plans closer to the launch date.

Rodney Cook, chief executive officer of Just Retirement, confirmed the plans and also announced the agreement of new partnership deals with Origen and NFU mutual.

He said: “I am pleased to announce Just Retirement has agreed a deal to provide Origen Financial Services with individually underwritten annuities to support the new Aegon OMO annuity service.

“We have also signed terms with NFU Mutual to be a member of the panel to provide individually underwritten annuities to their retiring pension customers.

“Our long standing commitment to lead reform in the annuity market to deliver transparency and create default “shopping around” achieved another positive step forward with the implementation of the ABI mandatory code on Retirement Choices on 1 March 2013.

“Individually underwritten annuities continue to grow in popularity and sales across the total market exceeded £4bn in 2012.

“The introduction of the ABI code and the growing use of individually underwritten annuities is good news for customers, intermediaries and for the industry as a whole.”

Just retirement also released its third quarter new business figures and revealed that it achieved total group sales of £300.4m.

Annuities sales reached £230.6m and lifetime mortgages advances totalled £230.6m.

Cook said: “Despite the expected slowdown in the third quarter as a result of RDR and gender regulatory changes Just Retirement delivered record total group sales of £1,247m for our business year to 31 March 2013, an increase of 20% compared to the same period last year.

“Just Retirement maintained a leading position in the individually underwritten annuity market with annuity sales of £230.6m during the quarter.

“Feedback we have received from intermediaries suggests the reduction in the third quarter is representative of the total intermediated market. Annuity sales for the 9 month period to March were 23.8% higher at £1,031m.

“Financial intermediaries have achieved a significant transformation but are continuing to adjust to operating in a post-RDR world.

“We continue to support their transition as they make refinements to their market propositions. We are pleased to see that activity levels have increased but are not expected to return to normalised levels until the mid-year.

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