Partnership has announced its planned merger with Just Retirement will complete in April, as it reports a 38% fall in operating profits over the last 12 months.
Total operating profit for the 12 months to 31 December was £40 million, down from £64 million in 2014, a decrease of 38%.
Sales of annuities fell by almost half compared to year before, with sales of £280 million over the 12 months to 31 December compared to £466 million over 2014.
However, Partnership points out that the pension freedom reforms only came into effect in April 2015 and that in the second half of the year sales improved, increasing 19% relative to the first half.
For example, it sold £54 million of annuities in the first quarter and £84 million in the fourth.
Partnership also wrote £277 million worth of medically underwritten defined benefit pension scheme bulk annuity deals, an increase from £247 million of bulk annuities in 2014.
Sales of care annuitiesf fell 9% to £69 million, down from £76 million.
It said it made an IFRS pre-tax loss of £16 million, primarily due to one-off costs, in particular Solvency II requirements.
The merger with Just Retirement Group to form JRP Group is expected to complete in early April it said.
On this basis, Partnership shareholders in JRP Group at the record date of 6 May 2016 would be entitled to the Just Retirement interim dividend of 1.1p share declared today.
Partnership is currently headed up by chief executive Steve Groves, (pictured) who will leave the company after the merger is complete.
Chris Gibson-Smith, chairman of Partnership and chairman designate of JRP Group, said: ‘The merger strengthens our position as a consumer champion and as a challenger to the traditional insurers in the defined benefit and retirement income markets…JRP Group has an exciting future ahead of it, and, as chairman designate, I am delighted to be leading the business into its next chapter.’
Source: New Model Adviser