General Insurance Article - Buck Consultants on Just Retirement & Partnership merger

 “Insurers such as Just Retirement and Partnership Assurance have seen significant reductions in individual annuity sales following 2014 budget changes, which together with new Solvency II requirements has led to the need for a strategic review.

 
 “The merger could deliver financial benefits over time, including a larger capital base, improved underwriting and risk selection data and an increased financial strength. Their (Just Retirement and Partnership Assurance) focus is expected to continue in the small to mid-sized market and cost savings could also be achieved by operational efficiencies and a more efficient distribution model.

  

 “The market has benefited from some intense competition between Just Retirement and Partnership Assurance which led to competitive pricing for some schemes. The merger could impact price competition, though traditional insurers are also willing to compete in this market. Subject to regulatory approval, it will be interesting to see how the market reacts to the merger and ultimately what the impact will be for the customer.

  

 “The merger is not likely to impact overall capacity, which will benefit from new entrants such as Scottish Widows who have recently entered the bulk annuity market. It may however limit the choices available to Trustees, particularly for smaller schemes.”