Equity Release News Equity Release Sales Up 11 Percent For Just Retirement

Written by Editorial Team
06 February 2009 / by Rebecca Sargent

Equity release and annuity provider Just Retirement has announced an increase in equity release mortgage sales, up 10.7 per cent year-on-year for the last six months of 2008.

The news follows predictions from Just Retirement that the demand for equity release will increase during the recession, as those close to pension age will seek alternative funding to secure their retirement.

The pension annuity side of Just Retirement did suffer though during the last six months of 2008, as sales of annuities fell 13.1 per cent year-on-year.

Commenting, Mike Fuller, chief executive of Just Retirement said: “Our first half sales performance reflects the Group’s focus on profitability given the challenging market conditions for annuity writers.

“A significant level of deferrals compounded by reduced maturity values in pension plans impacted sales volumes, while unprecedented widening in credit spreads on corporate bonds affected the pricing environment and the value of our assets under management.”

The 11 per cent increase in equity release sales was critical, Mr Fuller added, and meant that overall sales across the company only fell by a conservative 8.6 per cent.

Speaking of the company’s future, Mr Fuller added: “We have a robust capital position, strong cashflows, are writing profitable business and are well positioned in a market poised for substantial growth when normal conditions return.”

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