Partnership raises £100m before US push as it deals with annuity reform knockComments Off on Partnership raises £100m before US push as it deals with annuity reform knock
The company, which saw sales fall from £1.2 billion to £791 million in 2014, has agreed the deal with major investor Cinven as it continues to overhaul its strategy in the wake of Chancellor George Osborne’s industry reforms.
Partnership specialises in selling pension products to people who are ill or smoke, but has been hit by new rules that mean savers no longer have to buy an annuity when they retire.
Its shares have tumbled from the 385p they were valued at when it listed on the London Stock Exchange in June 2013 and fell a further 2% to 145p today.
However, boss Steve Groves is planning to develop new products and hopes to launch in the US through a joint venture with an unnamed partner.
Partnership has also cut more than £20 million in costs, including 129 redundancies, and has increased sales of bulk annuities, taking on the risks of company final-salary pension schemes.
Groves said the group had “weathered the most difficult period of market dislocation” following the Budget.
“I don’t see there being a big bang revolution when the changes happen [on April 6],” he added. “I think things will be more evolutionary and we are prepared.”