Prudential has appointed Michael Abramson, formerly head of strategic business for bulk annuities and longevity insurance at Legal and General, as its director of wholesale transactions.
He is due to start next month, taking over from director of defined benefit solutions Andy Reed, who has decided to step down from the business after 12 years to pursue other opportunities.
Tulsi Naidu, Prudential’s executive director for the UK and European business, said that Mr Reed was an integral part of developing a strong bulk franchise, with the group now having “considerable longevity experience, significant operational scale and a good investment track record”.
She continued that this gives capabilities that are increasingly in demand. “I am confident that Michael can help us to build on this strong position and become an ever more significant player in this important sector.”
Several pension providers have offset falling individual annuity sales since last year’s Budget announcement by boosting bulk purchase annuity business. Prudential’s latest results showed individual annuity sales 56 per cent lower during the first six months of this year, at £28m.
In May, Just Retirement revealed individually underwritten annuity volumes were down 59 per cent to £380.3m, but in the defined benefit market premiums were up to £448m, compared to £42m in the previous nine months.
Similarly, in August Partnership’s individual annuities sales fell from £334m to £128m year-on-year, however defined benefit bulk annuities grew from £37m to £68m over the same period.
ruth.gillbe@ft.com
