As much as 20%? Why providers' annuity margins are under scrutiny

The Financial Conduct Authority (FCA) is continuing its “complex but necessary” investigation into the workings of the annuity market. It is trying to find out if consumers are getting a fair deal when buying an annuity and if providers are doing their part to help. In a paper released last week, the FCA confirmed it would now include the profit margins of annuity providers in its probe. Many annuity firms do not reveal their profit margins but it is thought they vary widely between companies and could be more than 20%. The FCA said a “high-level assessment” on the profitability...