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PRESS RELEASE - 5th October 2010
Just Retirement Acquires TOMAS
Just Retirement (Holdings) Limited (“Just Retirement” or “the Group”), the
specialist UK life assurance group focusing on the provision of financial
services to those at or in retirement, announced today an agreement to acquire
The Open Market Annuity Service Limited (“TOMAS”) from Kerr Henderson (Financial
Services) Ltd (“Kerr Henderson”) as part of its strategic goal to invest in
further development of the open market option (“OMO”).
TOMAS is regarded as the leading provider of systems & services assisting
providers, advisers, trustees and employee benefit consultancies to streamline
the end-to-end annuity advice process. This secures the best deal on the open
market for retirees. It further creates cost savings and income opportunities
for advisers without the need for expensive bespoke solutions whilst, at the
same time. enabling a high quality service for all annuitants regardless of fund
size.
Under the direction of Michael Slevin, Managing Director, TOMAS has been increasingly
successful in growing its customer base by offering a truly independent service. However,
to accelerate its ambitions it had identified that further investment was needed for the
business to continue to expand.
Michael Kerr, MD of Kerr Henderson, said
“Kerr Henderson is very proud of what TOMAS has achieved in the past few years and I’m sure that with Just Retirement’s support the business will continue to flourish.”
Commenting on the agreement, Michael Slevin welcomed the financial strength that comes as part of a larger enterprise and the agreement that it will maintain its own operations, brand and marketing in Northern Ireland.
“Just Retirement provides the ideal partner to support the business whilst maintaining the independence of the annuity platform. We are delighted to have its backing as development of OMO is central to both businesses’ philosophies. We believe that this investment will enable us to significantly increase the number of people exercising their right to shop around for a better annuity.”
Rodney Cook, CEO of Just Retirement, said
“This is an important strategic initiative for Just Retirement. TOMAS’ work is critical to the continued growth in the use of the Open Market Option for retirees in the UK, for which Just Retirement has campaigned since its formation. I am pleased that we have been able to become involved in TOMAS at such an exciting point in its development.”
Contact
Michael Slevin, Managing Director, TOMAS
028 9068 0608
David Cooper, Marketing & Distribution Director, Just Retirement (Holdings) Limited
01737 233244
Notes to Editors
Just Retirement was founded in 2004 and listed on the Alternative Investment Market (AIM) in December 2006. In November 2009, Just Retirement was acquired for £228m by Avalon Acquisitions Limited, a company backed by funds advised by Permira. It recently announced sales for the 12 months to June 2010 of over £1bn, the first time in the Group’s history. At 30 June 2010, the Group had assets under management of £2.9bn and an embedded value of £289m.
Just Retirement estimates that it is the sixth largest provider of annuities and the largest provider of enhanced annuities in the UK. It was awarded “Company of the Year” by Financial Adviser magazine in 2009 having won 5 star service awards for both its products. The Group is also ranked within The Sunday Times’ “Top 100 companies to work for in the UK”.
Enhanced Annuities
Annuities are contracts offered by the Group to people at retirement (annuitants) under which the Group undertakes to make a series of payments in the future in return for the immediate payment of a lump sum to the Group by the annuitant. This lump sum is provided by the annuitant’s pension fund. The level of future payments is set according to the rates of return available within the capital markets and the expected longevity of the annuitant. In 2009, the total value of the annuity market in the UK was £10.8bn (source: Association of British Insurers “ABI”).
Enhanced annuities are offered to people at retirement that may not live as long as average due to lifestyle (smoking, for example) or illness. Given the impact of these factors on longevity, it is possible for providers such as Just Retirement to offer “enhanced” annuity rates to those qualifying. In 2009, the total annual value of the enhanced annuity market in the UK was £1.8bn.
Just Retirement does not provide pension fund management. As such, it can only offer annuity contracts to those utilising the Open Market Option (OMO). OMO allows pension fund holders to “shop around” for an annuity rather than take that provided by the incumbent pension fund provider. At the end of 2009, the total value of annuities bought during the year using the OMO was £5.4bn.(source: Association of British Insurers “ABI”)
Founded in 1962, Kerr Henderson (Financial Services) Limited is an independently-owned IFA based in Belfast and is part of the Kerr Henderson Group, which also provides pension administration, consultancy and actuarial services to private, corporate and trustee clients throughout the UK.
Kerr Henderson has been developing its online annuity system since 2003 and in 2007 established The Open Market Annuity Service Limitedwhich has since then been the primary vehicle for servicing its trustee and corporate clients' annuity needs on the open market.
The Open Market Annuity Service provides a range of services to distributors of annuities.
There are two basic models, the first of which allows a distributor to fully outsource the process to TOMAS. Alternatively, firms can adopt the TOMAS software and use it within their own business to improve the customer offer, whilst reducing costs and ensuring all customers get the same high quality experience.
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