Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a741671

Panmure: Partnership & Just Retirement are now 'exceptional' buys

by Dylan Lobo on Mar 19, 2014 at 17:13

Panmure: Partnership & Just Retirement are now 'exceptional' buys

Panmure Gordon sees some 'exceptional' buy opportunities in life firms after the sector went into shock on George Osborne's pensions bombshell.

The chancellor's annual Budget saw the removal of the compulsion to buy an annuity.

Annuity provider share prices were hammered, with small caps Partnership Assurance sliding 55% and Just Retirement 42.4%.

In the blue chips L&G lost 8.4%, Standard Life 3.9% and Aviva 5.14%.

Panmure analysts Barrie Cornes and Keith Baird see the sell-off as a major overreaction.

'The abolition of compulsory annuity purchase is a massive change to the industry but we do not think that it means the end of annuity product sales,' the pair said in a note to clients.

'Whilst we think that there will be a reduction in the number of people buying an annuity, there will still be demand for the product, particularly given the increasing longevity of the population.'

They added: 'Share prices have been hit hard to the point where we think the market is assuming no new annuities will be written going forward. We think the product will still be acquired given the need to security of income in old age. 

'Being able to draw down an entire pension pot without a sizeable alternative income seems bizarre and lacking in forward thinking.'

The duo describes the opportunity in Just Retirement and Partnership as exceptional.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the shares

  • Partnership Assurance Group PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Just Retirement Group PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Legal & General Group PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Aviva PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet