Just Retirement annuity sales jump 34% in ‘record’ year
Annuity sales hit £1.2bn in the 2011-2012 financial year, while equity release sales jumped 11 per cent to £270m.
Just Retirement has confirmed that sales of its core annuities products soared by close to 34 per cent in the 12 months to June 2012, pushing overall group sales to record levels.
The firm announced today (30 July) that it generated sales of a little less than £1.5bn in the year to the end of June, an increase of 29 per cent compared to the previous year.
It said this was largely drive by annuity sales of £1.19bn over the period, a jump of 33.8 per cent. Equity release mortgage advances also increased in the 12 months to the end of June, rising by 11.4 per cent to £269.9m.
In the three months to the end of June, the product provider said group sales were £425.9m, up 21.7 per cent, with annuity sales accounting for £362.3m, an increase of 28.2 per cent.
Rodney Cook, chief executive of Just Retirement, said: “We launched our innovative fixed-term annuity product one year ago, the first in the UK to have an enhanced annuity conversion feature, and sales have reached target levels as increasing numbers of financial advisers are introducing the solution into their retirement options.”
Mr Cook also claimed that the equity release market has “significant potential”.
Just Retirement’s report, The role of housing equity in retirement planning, launched at a parliamentary event on 11 July, identifies the growing demand amongst retirees to release equity from their homes to help them achieve an acceptable retirement income level.
Mr Cook said: “There are significant regulatory changes impacting the industry during the next year.
“Just Retirement’s programmes are progressing well to ensure we support our partners through these changes and to ensure our business continues to offer the highest levels of service to our customers.”