Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Battered Resolution defiant: 'annuity reform will benefit us'

Battered Resolution defiant: 'annuity reform will benefit us'

Resolution made a defiant stance this morning, telling the stock market that it believes the Budget proposals to scrap compulsory annuities will actually strengthen its business.

Insurers sold off sharply yesterday following the chancellor’s statement with Resolution’s share price diving by 15%, wiping £800 million off the firm’s value.

However, it said that while there is a ‘negative implication’ for new business flow in the individual annuity market, it believes annuities will continue to be ‘an important product for those who value the guaranteed income throughout increasingly long retirement periods.’

‘Overall we see the proposals as a positive for the retirement savings market. The increased flexibility for savers means the attractiveness of placing additional contributions into a pension has now increased,’ the group said,

‘As the number two player in workplace defined contribution (DC) pensions with around 2 million DC pension customers overall (estimated to hold 1 in seven policies in the market), and with positive operational leverage in our corporate benefits business, Friends Life is well placed to benefit from these changes.’

Resolution, led by chief executive Andy Briggs (pictured), added that it is already working on expanding its range of retirement propositions.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Play Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

In the second episode of our new series, Verleyen jumps on board a black cab and explains how hard it's become to find good valuation on the market.  

Wealth Manager on Twitter