Only sales of retirement income increase


Just Group saw its retirement income sales increase 15% to £ 2.2 billion at the end of 2018, compared to the previous year.

According to a market update from the provider, this increase is due to continued growth in defined benefit risk reduction sales, which rose 32% to reach £ 1.3 billion in 2018.

However, after the record £ 469m in DB sales achieved at the end of June 2018, the group recorded £ 233 of new business at the end of December.

Just argued that he was “able to be more and more selective” about the cases he handled in the last quarter of the year.

“We have also seen the market demonstrate similar price discipline. 2018 was a banner year for DB sales in the market, and expectations are that 2019 will be another strong year, ”he said.

Guaranteed income sales for the full year fell 4% to £ 786million, following a slowdown in the last quarter of 2018.

Just argued that this slowdown is due to price increases implemented following the entry into force of the Prudential Regulatory Authority (PRA) publication CP13 / 18 – which sets new rules for mortgages on parole.

Purchases continue to grow as a proportion of total market sales and reached 54% in the third quarter, the supplier added.

Lifetime mortgage advances of £ 602million were up 18% from 2017, in line with growth in retirement income sales, Just said.

The market growth in this segment has been strong, as customer appetite and supply from insurers have increased, he added.

According to Rodney Cook, CEO of Just Group, despite the challenges it faced, the supplier “achieved another year of double-digit sales growth and helped more customers than ever.”

He said: “The significant regulatory uncertainty caused by CP13 / 18 has not deterred our colleagues, distributors or customers from the quality of our products and services and I thank them all for their continued support.

As previously announced, following the release of PS31 / 18, the board continues to review the composition and optimal level of capital for the group in order to provide a prudent basis to support our new business franchise and to establish a appropriate dividend policy for shareholders. “

Released in December, this policy statement sets out the PRA’s findings on the treatment of parole mortgages held to secure annuity liabilities.

The regulator concluded that transitional measures for technical provisions for cases prior to 2016 will be recognized over the remaining transitional period until December 31, 2031.

Mr. Cook concluded: “We remain focused on our disciplined pricing strategy and on achieving attractive returns on new business capital and we have been increasingly selective in our three main markets during the second half of this year. year round to maximize returns. “

Today (February 6), Just Group also closed a £ 158million buyout deal for 1,200 retirees with trustees of the Wyeth Group Pension and Life Assurance Scheme.

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