Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Just Retirement restructures as annuity sales slide on Budget bombshell

Just Retirement restructures as annuity sales slide on Budget bombshell

Just Retirement is to spend millions on a restructure after a 50% plunge in annuity sales following March's Budget.

Just Retirement said the one off reorganisation, which will cost £5 million, is expected to save the group £14 million next year.

It also said it would invest an additional £5 million into the business over the year.

'Together, these steps will ensure that we are ready with appropriate new product and distribution offerings in April 2015 when the new regime begins,' the firm told the stockmarket.

Chief executive Rodney Cook (pictured) added: 'Although operating conditions have become much tougher since the Budget, with sales at around half of pre-Budget levels, we are rapidly adapting our model to the new environment. I am confident that by continuing to offer customers a fairer deal in retirement we can deliver further shareholder value.'

It is not clear whether the restructure will result on job losses.

Before chancellor stunned the pensions world by saying people would not longer be required to buy an annuity on retirement, business was reasonable at Just Retirement in the run up to the Budget.

In the three months to 31 March, individual underwritten annuity sales were up 34% year-on-year at £288 million.

It also saw record quarterly lifetime mortgage advances at £159 million, a rise of 128%.

Shares in the firm plunged by 36% in the hours after the Budget.

At 8.50am shares had rallied by 4.5% in response to the restructure news to stand at 164.4p, although they remain some way off a 52-week high of 289.25p.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Biotech Growth: we will ride out this storm

Biotech Growth: we will ride out this storm

Geoffrey Hsu of Biotech Growth Trust says the sell-off in biotechnology stocks represents a buying opportunity for long-term investors.

Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Your Business: Cover Star Club

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

In a buyers’ market for off-the-peg discretionary management, self-funded start-ups begin at an inherent disadvantage

Wealth Manager on Twitter