INSURER Partnership showed the scars of George Osborne’s annuity overhaul yesterday, after revealing a 43 per cent drop in sales of the product.
Individual annuity sales between January and June dropped to £334m from £590m in the same period last year, leading operating profits down 44 per cent to £33m.
The FTSE 250 offers so-called enhanced annuity, which gives better rates, to savers with health problems who are more likely to die earlier.
The chancellor scrapped the need to buy annuities in his March Budget, hitting Partnership’s core business.
“We have taken decisive action to manage our cost base in light of the disruption and will continue to maintain pricing discipline and only write business that is economically attractive,” chief executive Steve Groves said in a statement.
The group said it had sold more bulk annuities to corporate pension schemes to try to cushion the decline in individual sale.
Bulk sales rose to £37m for the half year, up from £11m in 2013.
A tie-up with Rothschild was also unveiled which will see the historic institution manage £150m for Partnership in a bid to “diversify” the group’s investment portfolio.