Standalone range of products from Partnership soon
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Partnership is to launch a range of equity release products in the first half of this year.
The UK insurance provider already provides enhanced retire-ment annuities, term life insurance and long-term care fee payment products.
Ged Hosty, director of equity release at Partnership, says in 2010 the firm identified equity release as an attractive investment and put in place a strategy to originate lifetime mortgage assets. It did two portfolio acquisitions last year and launched into the market for new business in May via a deal with More2Life
Hosty says: “The next stage is to look at introducing our own product. It would follow an impaired model - we would make it different to the products offered via More2Life, so we will be looking at different underwriting and product features.
“We think it’s a good time to come into the equity release market as there was a decline in 2009 and 2010. We think it will pick up again but by doing this now, we will hopefully get ahead of other providers.”
Dean Mirfin, group director at Key Retirement Solutions, says he is not surprised by Partnership’s decision as it is already involved in the market through More2Life, which is part of Key Retirement Solutions.
He says: “The one thing it will be looking to do is to keep true to its aim, which is to give customers the best of what they are entitled to. Introducing this attitude to the market can only be a good thing.”
Simon Chalk, later life planner at Later Living, adds that the move could turn the tide for the sector after its decline in the last few years.
He adds: “The good news is that in 2010 a similar number of firms entered and exited the market, and I hope to see a few more providers coming into the sector soon.”
Partnership is already member of Safe Home Income Plans.
The last figures from SHIP for Q3 2010 showed that the value of the equity release market rose by 4% from £196.7m in Q2 2010 to £205m - the largest quarter-on-quarter increase since mid-2008.
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