The head of care services for Lancashire-based IFA Carepal, said the moves to take the two competitors public was a signal that the firms were “here for the long term”, and encourage innovation regarding products for the long-term care market.
Partnership successfully completed its IPO in June, while Just Retirement announced its intention to float on the London Stock Exchange last week.
The global offer will include the sale of new ordinary shares, equivalent to £300m, and a partial sale of existing ordinary shares currently held by the group’s main shareholder Avalluz S.àr.l, plus minority-owned and management shares.
Ms Faye said: “It’s fantastic that there are more companies in the market and that they are looking at offering more flexible products. The care market needs to think more creatively.”
Just Retirement announced the pilot launch of an immediate-needs annuity product in partnership with Saga Group during August.
Friends Life and Partnership are the only other providers currently offering similar products. Steve Lowe, director of external affairs for Just Retirement, said he expected Just Retirement’s proposition to be rolled out fully by the end of the year, adding it would build “competitive tension” and bring more choice to an underdeveloped market.
However, he also warned that: “Unless people are aware of and get motivated about the need to prepare for long-term care costs, it won’t work.”
Trade body view
Janet Davies, co-founder of Symponia, the professional body for care fees planning advisers, said: “If by floating Just Retirement can fund greater creativity, I’m all for it. The firm’s entrance into the immediate-needs annuity market is long-awaited, and I hope it is the first of many, as long as these companies talk to advisers and create products that match the needs of the people that need them.”