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JRP, the pensions provider created last year from the merger of Just Retirement and Partnership Assurance last year, has said its £1.6bn tie-up is “more than delivering the expected benefits”.
In a trading update on Thursday, JRP said the newly formed company had adapted “rapidly” to the new regulatory environment for UK pensions as it reported an 11 per cent fall in total new business sales in the 12 months ending in December.
JRP said it had made good inroads into achieving a cost savings target of £45m a year from the partnership with “synergies” worth £30m a year already achieved.
“This is well ahead of schedule, and will contribute to profit margins in 2017″, said JRP.
The company said it expects margins on its new business to exceed 6 per cent in 2016, compared to 3.6 per cent in 2015, on the back of its “pricing discipline”, and “attractive mortgage yields”. Sales of its retirement products however fell 13 per cent to £1.84bn in the period.
Rodney Cook, group chief executive said:
We took full advantage of favourable economic conditions in the first 9 months of the year for Lifetime Mortgages and then intentionally managed back sales in the final quarter.
The LTM market grew by more than 30 per cent in 2016, and it remains attractive with favourable underlying dynamics.