Pre-merger return to profit for Just Retirement

Pensions provider Just Retirement said six-month pre-tax profits rose to £26.1m compared to a £9.2m loss for the same period last year, as the group prepared for its merger with Partnership next month.

The company said total new business sales jumped to £1.2bn from £820m, while underlying operating profits rose to £65.2m from £42.6m.

Lifetime mortgage advances were up 49% to £237m, in line with the company's 25% target of retirement income sales.
Chief executive Rodney Cook said the defined benefit pension market offered "significant potential" and the numbers reported on Friday showed "we have real traction in this area".

"Meanwhile, the individual guaranteed income-for-life market has stabilised and we expect to see a return to longer-term growth here too," Cook said.

"The merger with Partnership provides us with a further source of earnings growth, and it will enable us to drive significant cost efficiencies, underpinning our value-for-money products. The integration planning we are doing confirms our confidence in achieving at least £40m of cost savings."