Just Retirement sales jump 41% in first quarter

For the three months ended 30 September, which make up the first quarter of its 2015/16 financial year, total new business sales came in at £359.9m from £255.1m in the same period a year ago.

The figure beat consensus expectations of around £279m.

At the same time, the defined benefit de-risking business, or bulk annuity sales, were more than four times higher than a year ago at £103.6m.

Guaranteed-income-for-life sales were 7% higher than the comparative period in 2014, while lifetime mortgage advances were up 42% at £114.4m.

Just Retirement, whose merger with rival Partnership Assurance was given regulatory clearance by the CMA last month, raised its half-year target for bulk annuities to £500m from £400m after winning three further defined-benefit de-risking sales with a combined value of £269m.

Chief executive Rodney Cook the results mean the company is entering the proposed merger with Partnership Assurance – announced in August – with momentum.

“I am more convinced than ever that we will be stronger together with Partnership, and that the best is yet to come,” said Cook.

Analyst Eamonn Flanagan at broker Shore Capital said the results were "peppered with highlights", suggesting the 7% growth in individual sales "suggests a rebound in this market which we believe will continue".

He added that the performance in the bulk market "can only improve further with the Partnership deal and the growth in lifetime mortgages suggesting that the time for this product has finally arrived".

At 1026 GMT, Just Retirement shares were up 3.3% at 165.80p.