Partnership profits up despite new business drop

Partnership Assurance Group has reported total operating profits of £131m in 2013, representing a 17 per cent rise on the £112m of 2012.

This is despite a 3 per cent drop in new business premiums to £1.2bn and total retirement business broadly flat with the previous year at almost £1.2bn.

However, the external non-standard annuity market was down 18 per cent.

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Steve Groves, Partnership group chief executive, said: “Trading conditions in the second half of 2013 remained difficult. The regulatory changes that occurred at the end of 2012 have had a deeper and longer impact on the retirement and care annuity markets than we foresaw.

“In these challenging conditions we have maintained our pricing discipline, and have chosen only to compete in those segments of the market offering attractive returns to our shareholders.”

He added that the findings of the thematic review of the annuity market conducted by the Financial Conduct Authority could improve the company’s access to the annuities market.

Last month (28 February) enhanced annuity and equity release provider Just Retirement attributed a fall in underlying operating profit and new sales to business “pulled forward” into 2012 by the Retail Distribution Review and gender-equal pricing.