Partnership Assurance’s sales were decimated by George Osborne during the first half of the year after the Chancellor announced radical reforms in March’s Budget.
The company, which specialises in giving better pensions to people who are ill, saw sales of individual annuities slump 43% to £334 million following the changes that will give retired workers more freedom with their saving pots.
From April next year, they will no longer have to buy an annuity when they retire.
Operating profits fell £59 million to £33 million, compounding a difficult period for the insurer, which was listed by private-equity firm Cinven for 385p last summer. Its shares fell 1.5p to 126.87p today.
Boss Steve Groves said the company planned to strip out £21 million in costs and start selling its products in the US.
Partnership increased its sale of bulk annuities to defined benefit pension schemes from £11 million to £37 million and has signed a deal with Rothschild to invest £150 million in commercial mortgages.
Groves said the company would also look to develop new products.
