Just Retirement saw sales fall 18% in the three months ahead of its merger with Partnership.
The annuity providers completed their planned merger to form JRP Group at the start of April.
In a market update published this morning, Just Retirement reported new business sales fell 18% from £276 million in the first three months of 2015 to £227 million in the same period this year.
Retirement sales, which included drawdown, defined benefit de-risking and guaranteed income for life products, fell 33% from £213 million to £144 million in the period. However, equity release sales increased from £63 million to £83 million up to 31 March 2016.
Over a nine month period to 31 March 2016 Just Retirement saw retirement sales increase 33% to £1.5 billion. This compared to £1.1 billion over the same period in 2015. This was due in part to a 66% rise in defined benefit (DB) de-risking sales from £448 million to £744 million.
Partnership also saw a 28% rise in new business sales over the first three months of 2016 from £126 million to £161 million. This included a 148% increase in equity release sales from £27 million to £67 million.
Together the combined business would have seen a 4% fall in new business sales over the first three months of 2016, from £402 million last year to £387 million this year.
Rodney Cook (pictured), chief executive of JRP Group, said the new company would have had a ‘steady’ first quarter if Partnership and Just Retirement had merged before April.
‘Our merger with Partnership didn’t become effective until after the quarter end, but Partnership’s calendar first quarter 2016 sales held up well in the individual market, and the combined group would have had a steady first quarter,’ he said.
He added the company would now look to realise promised savings of £40 million following the completion of the merger.
‘Our focus remains very clear: we will continue to deliver on business as usual, whilst executing the merger cost synergies of at least £40 million,’ he said.
Last year, a document sent to Just Retirement and Partnership shareholders suggested the combined entity would cut at least 230 jobs following the merger.
Source: New Model Adviser