Just Retirement sales up 13% year-on-year

Just Retirement has reported a sales increase of almost 13% to £763.5m while value of new business after tax was £42m up from £41m in 2006-2007.

Just Retirement says it has continued to introduce product variations throughout the year to extend its reach within the wider market.

It plans to roll-out more equity release products building on recent work in educating the IFA market on options within the market.

The value of new business for equity release was up 70.3% to £20.1m from £11.8m in 2006-2007.

The group says margins on equity release business improved during the financial year as spreads between our quoted mortgage rate and the risk free rate increased.

Just Retirement says it has been in a strong position as a result of its self financing business model in the face of the widely publicised lack of mortgage funding available in the market.

It also refers to research from Standard Life that reveals 8% of 55-65 year olds expect to borrow against their homes and says that if these intentions convert to actual demand, the equity release market will grow substantially over the next 10 to 15 years.

Just Retirement says that, notwithstanding the short term challenges, it remains confident of the long term prospects for the UK retirement market.