Hailing a “strong set of results” for the first six months of 2013, group chief executive Steve Groves said he remained “confident in the growth prospects for both the at retirement and care annuity markets, we are on track to meet full-year total operating profit expectations”.
Following what Mr Groves described as an “immensely busy period” for the firm which saw it prepare for a listing on the London Stock Exchange, total operating profits rose from £45.4m in the first six months of 2012 to £53.3m during the corresponding period this year.
Retirement new business premiums also rose, by 16 per cent to £601m, while total new business premiums increased by 12 per cent to £631m.
While total operating profits rose, new business operating profit and international financial reporting standards total profits before tax both fell, from £44.8m to £38.2m and £17.4m to £8.6m respectively when compared with the first six months of 2012. This was explained by planned one-off expenses related to the firm’s initial public offering in June.
Mr Groves said he was positive for the remainder of 2013, particularly regarding annuity rates, with improving economic conditions, strong performances in the equity markets and increasing yields on fixed-income securities.
He added that government inertia on the provision of social care, a market where Partnership has been a vocal advocate for reform, had led to confusion on the actual level of government support for individuals. This had affected the market for selling immediate needs annuities, but quote activity had improved in recent months.
Mr Groves said: “We have continued to invest in development of our defined benefit de-risking proposition, and we have now completed a number of buy-in and buy-out transactions, proving the benefits of our unique proposition for pensioners, trustees and sponsoring companies.
Adviser View
Steve Clark, director of Leicestershire-based advisory firm 44 Financial, said: “In my experience Partnership is certainly one of the main forces and it is there or thereabouts on rates, and doesn’t just cherry-pick when it comes to enhanced annuities. Keen underwriting, good service and a good knowledge of the market have clearly helped.”
