MetLife has pulled out of the fixed term annuity business blaming insufficient returns.
An email released by Primetime Retirement, MetLife said it could no longer offer sufficient returns to deliver customer benefits on its Freedom Income Plan.
It said it would not provide quotes until the interest rate environment changes "substantially".
The rest of its product range is unaffected, the email added.
The email said: "We will of course service all existing and pipeline business but after 14 September 2012 we will no longer be offering quotes on new FIP business."
Stuart Wilson, marketing director at Primetime Retirement, said: "We are very sad to hear that MetLife is pulling out of the fixed term annuity market.
"Living Time, now Primetime Retirement, created the original plan which many customers continued to support under MetLife. We had hoped that MetLife would be able to achieve the same sort of returns that Living Time enjoyed through Alico.
"Despite MetLife's exit, there are a number of fixed term annuity providers who continue to provide strong returns despite the difficult market conditions.
"Despite the low Government Actuary's Department rate, the gap between lifetime annuities and fixed term annuities has narrowed significantly and therefore, fixed term annuities will continue to be a viable alternative to lifetime annuities - especially for those that are healthy and don't yet qualify for enhanced annuities."
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