Annuities sales set to plummet

Kate McCann
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RATINGS agency Moody’s has adjusted its outlook on the annuities industry from stable to negative and warned that sales of the insurance products could fall by as much as 75 per cent in the wake of changes announced by the chancellor in his recent Budget.

Moody’s downgraded the outlook for six of the major industry players in the UK market including Aviva, Legal and General and Prudential and warned of a huge short-term impact of the shake-up of the pensions industry.