Equity release market still profitable, says Just Retirement

During the three-month period ended March 31, Just Retirement’s annuity sales soared 87% to £238.6 million compared with £127.5 million during the same period last year.

The company’s equity release sales fell 8.6% to £34.2 million compared with £37.4 million during the first three months of 2009. Overall, new business sales increased 65%.

For the nine months to March 31, Just Retirement posted a 47% increase in annuity sales, totalling £588 million compared with £399.6 million during the prior-year period. Equity release sakes rose 10% to £131 million from £119.2 million.

Commenting on the results, Mike Fuller, CEO at Just Retirement, said: “Third-quarter sales have been the strongest since the group commenced business, with total sales for the month of March exceeding the £100 million level for the first time in the group’s history.”

He added: “Equity release sales in the quarter were affected by seasonal factors and a decision, late in 2009, to dampen demand for a temporary period. This was based on Just Retirement’s desire to grow the market for draw-down mortgages rather than over-participate within the “max cash” arena. As the group’s recent interim results highlighted, profitability within equity release remains robust and I am confident that sales will return to their previous upward trend.”