Just Retirement Group has seen a 43% surge in operating profits over the six months to 31 December 2015.
Total new business sales rose 50% but this was driven mainly by a 98% increase in defined benefit (DB) de-risking deals from £355 million to £701 million.
Sales of its guaranteed income for life products increased from £266 million over the same period in 2014 to £271 million.
Operating profit increased by 43% driven, it said, by a 153% rise in new business profit.
Drawdown sales fell from £35 million over the period in 2014 to £7.2 million for the last six months of 2015. Just Retirement last year replaced its capped drawdown product with the Flexible Pension Plan drawdown product for the pension freedoms.
Flexible Pension Plan sales were £4.8 million, which Just Retirement said was ‘modest’ given their limited availability at that time.
Just Retirement and Partnership today have confirmed their planned merger will go ahead in April.
Juts Retirement said it expects to make at least £40 million of cost savings as a result of the integration of the two businesses.
Rodney Cook, (pictured) group chief executive, said: ‘We are pleased with our progress to date in the evolving pensions landscape and changing regulatory environment. For the future, the DB market offers significant potential and today’s figures show that 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.’
He added: ‘I am pleased that the Just Retirement chapter is ending on a high note and these results give me confidence as to the future for the combined group.’
Just Retirement announced an interim dividend of 1.1p
Source: New Model Adviser