Just Retirement has seen “record” annual total group sales of £1.65bn, up 12.9 per cent on the previous year, for the 12 months to the end of June.
In its annual results, the ‘at retirement’ group also recorded annual annuity sales of £1.34bn, up 12.5 per cent on the previous year, as well as “record” annual lifetime mortgage sales of £309.7m, up 14.7 per cent.
Rodney Cook, chief executive of Just Retirement, said all categories of the business have performed “exceptionally well”, and ensures that the group continues to hold “leadership positions” in its core markets.
He said: “Sales of annuities were £312.9m for the quarter and £1.344bn for the year.
“Annual sales are the highest since the group began trading and are particularly pleasing given the significant regulatory changes in the period from the retail distribution review and the European gender directive.
“As predicted, there has been some volatility in the quarterly pattern of annuity sales transactions as distributors have adapted to the regulatory changes. However normal market activity now appears to be returning.”
Mr Cook believes sales of individual underwritten annuities will continue to “grow favourably” as those approaching retirement are increasingly aware of the improved outcomes that can be achieved by the majority of retirees through purchasing this type of annuity.
He added that the impact of the recently launched Association of British Insurers mandatory code of Retirement Choices, which includes the publication in the summer of the annuity rates of each ABI member, will raise awareness and comprehension amongst purchasers of retirement income solutions.
Citing the growth in lifetime mortgages, Mr Cook added the development of new products by Just Retirement to anticipate the needs of new customer segments has helped to deepen the group’s distribution arrangements and funding support to strategic partners.
He said: “The lifetime mortgage market continues to benefit from short term consumer demand and favourable longer term growth prospects, based on the structural fundamentals arising from economic and demographic factors and attitudinal changes of those approaching retirement compared to prior retirees.”
Furthermore, Just Retirement has entered into a long-term contract to provide immediate needs annuity solutions to Saga.
Mr Cook said: “We will shortly be extending the availability of similar products to financial intermediaries.
“The Just Retirement Group has delivered a strong set of sales results and we are confident the application of our unrivalled proprietary intellectual property in our chosen markets will deliver sustainable long term growth.”
