More companies are searching for ways to de-risk defined benefit (DB) schemes
Companies trying to bring defined benefit (DB) schemes under control are increasingly turning to de-risking solutions offered by the likes of Just Group, which has today announced a 99% increase in the service compared to the first quarter of year.
For the first three months of 2018 Just reported sales of its DB de-risking proposition of £249 million, up form £125 million over the same period the previous year.
It reached a peak in the last quarter of 2017, with £434 million. Just said it had seen a ‘marked increase’ in activity this year compared to the same period last yea , but also put that down to more proactive employee benefits consultants.
Just reports DB de-risking sales as part of overall retirement income sales, which increased 43% from £317 million to £454 million.
Another component of that is sales of guaranteed income for life products, which increased from £174 million to £188 million (8%) and care plans (£17 million, same as the previous year).
Drawdown sales decreased very slightly, from £12 million to £11 million.
Group Chief Executive Rodney Cooke said: 'We have taken full advantage of buoyant market conditions to make a strong start to the year, especially in DB. We have maintained our financial discipline and are in a position to price even more selectively over the balance of the year. The pipeline remains strong across our main products, particularly in DB De-risking, and we look forward to the remainder of the year.'