Profits at Partnership Assurance dropped 51% to £64m in 2014 due to falling individual annuity sales in the wake of the Budget reforms, latest results show.
Profits at the enhanced annuity specialist stood at £131m the previous year. Individual annuity sales dropped 57% to £466m in 2014 following the announcement of pensions freedom in the Budget. Full year results for the business revealed that, though individual business had been affected, bulk annuity sales saw a threefold increase to £247m. These contracts remove risk from defined benefit pension schemes. It reported a 15% increase in the sale of care annuities to £76m following an “intensive adviser education campaign”. Operating profits had been forecast to reach £61m but the fir...
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