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 Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter