Just Retirement sales up 36% but slump forecast

Just Retirement Group’s total sales value rose 36% in the three months to 30 September but the provider expects business to slow down.

Sales at Q3 hit £333.4m, compared to £245.5m for the same period in 2010. Annuity sales accounted for £268.3m, up from £175.7m in 2010.

However, equity release products dragged on performance, with sales down 6.7% on Q3 last year.

In 2010 Q3 equity release sales brought in £69.8m, whereas this year the value of equity release sales has fallen to £65.1m and the provider predicts sales will fall further.

Rodney Cook, chief executive of Just Retirement, said: "Equity release sales have fallen slightly during the quarter due to the volatile market conditions and economic uncertainty impacting customers' purchasing patterns.

"We remain convinced that this market has significant long term growth potential."

Cooke said adverse economic conditions were causing people to delay buying retirement products.

"The extreme current market volatility is impacting consumer confidence and causing some consumers to defer their purchasing decisions," he said.

"We expect a temporary slowdown from the high levels of annuity growth seen in this quarter."