Newly-combined JRP Group says it's steady

In its Just Retirement division, total new business sales achieved in the nine months to 31 March were 33% higher than a year earlier, even though the expected quiet start to 2016 did eventuate.

Its ‘Defined Benefit De-risking’ (DB) sales during the nine months were up 66%, driven by a strong December quarter ahead of the implementation of Solvency II, with sales in the first calendar quarter of 2016 dropping 54% compared to last year.

Just Retirement’s combined ‘Guaranteed Income for Life’ (GIfL) and ‘Care’ sales were 2% higher over the nine months which, together with DB, drove a 30% increase in its total retirement sales during the period.

Lifetime mortgage advances by Just Retirement also saw a 44% increase, above the 25% of retirement income sales targeted.

JRP’s Partnership Assurance Group division also delivered a “solid start to the new calendar year”, despite a quiet quarter for DB which was also anticipated.

Partnership’s GIfL sales improved 41% compared to the first quarter of 2015, though it wasn’t quite enough to offset the fall in DB sales after a busy December quarter.

JRP’s board said it would have enjoyed broadly flat GIfL sales on a combined basis during the first quarter, which suggested some stabilisation of that market.

"We have made a solid start to the new calendar year, and total sales for JR standalone were up 33% in the nine months to 31st March 2016,” commented group chief executive Rodney Cook.

“Our merger with Partnership didn't become effective until after the quarter end, but Partnership's calendar Q1 2016 sales held up well in the individual market, and the combined group would have had a steady first quarter.”

Cook said he remains positive about the future, and reiterated the outlook comments made at the recent interim results.

He said the long-term future for the DB market looked buoyant, while the improving trend in the individual GIfL market appeared to be continuing.

“Our focus remains very clear: we will continue to deliver on business as usual, whilst executing the merger cost synergies of at least £40m.

“Now the merger is effective we can offer even better value to customers, investors and business partners, and I look forward to demonstrating our potential as JRP,” Cook said.