Partnership Assurance Group PLC Trading Update ahead of Investor Day (9888X)
November 26 2014 - 1:00AM
UK Regulatory
TIDMPA.
RNS Number : 9888X
Partnership Assurance Group PLC
26 November 2014
26 November 2014
Partnership Assurance Group plc announces trading update ahead
of investor day
Trading update
The following current trading information will be included as
part of the Partnership Assurance Group plc ('Partnership')
investor day today.
Partnership's Q4 performance to date is in line with guidance
given at the Q3 announcement, with sales of individual annuities
well below 50% of pre-Budget levels reflecting the compound effect
of both lower quotes and conversion rates. As also indicated at the
time of the Q3 announcement, it is possible that deferrals could
increase further as we approach the implementation of the Budget
proposals in April 2015.
The DB pipeline is strong and growing but quarterly completions
are likely to remain lumpy.
The cost management programme announced on 23 June 2014 is
tracking well against announced savings of GBP21 million versus the
planned 2015 cost base. Headcount was reduced from 566 at 31 March
to 445 at 30 September 2014. Restructuring costs are expected to be
within previous guidance of GBP3 million.
The economic capital surplus at 30 September was GBP163 million,
representing coverage of 149% (30 June 2014: GBP170 million/153%).
The Board continues to maintain a target minimum coverage ratio of
125% in normal conditions. There has been no change to
Partnership's pricing discipline, which seeks to ensure each policy
covers its own capital requirement. However, as guided previously,
while the individual annuity market remains subdued, the economic
capital coverage ratio is expected to reduce.
Discussions with potential partners regarding the launch of a
point of need care annuity in the US are progressing well and a
reinsurance based market entry strategy has now been selected.
Further updates will be communicated in due course.
Investor day
Partnership will today be hosting a presentation for investors
and analysts to provide an update on the business and strategy.
The presentation will commence at 9am at Furniture Makers Hall,
12 Austin Friars, London EC2N 2HE
A copy of the presentation will be available on our website at
9am. The event will also be available to view via a live webcast.
Registration is via our website www.partnership-group.com
Commenting on today's announcement, Steve Groves, CEO
commented:
"In our presentation to investors and analysts this morning, we
will be providing an update on the business and the various
initiatives, which we are pursuing to diversify and grow the
business, including our Defined Benefit proposition and the market
opportunity for a care annuity in the US. Our discussions with
potential US partners are progressing well and a reinsurance based
market entry strategy has now been selected. "
Enquiries
Investors: Media:
----------------------------------- ---------------------------------------------------------
Katherine Jones Jim Boyd Citigate Dewe Rogerson
Director of Investor Director of Corporate Grant Ringshaw, Shelly
Relations Affairs Chadda
+44 (0) 207 444 4080 +44 (0) 207 618 2744 +44 (0) 207 638 9571
katherine.jones@partnership.co.uk pressoffice@partnership.co.uk
----------------------------------- ------------------------------- ------------------------
Further information
A copy of this announcement is available on Partnership's
website www.partnership-group.com
The financial information contained in this announcement has not
been audited or reviewed by the Group's auditors.
Financial calendar
3 March 2015 2014 preliminary results
Forward looking statements
This announcement in relation to Partnership Assurance Group plc
and its subsidiaries (the 'Group') contains, and we may make other
statements (verbal or otherwise) containing, forward-looking
statements about the Group's current plans, goals and expectations
relating to future financial conditions, performance, results,
strategy and/or objectives.
Statements containing the words: 'believes', 'intends',
'expects', 'plans', 'seeks', 'targets', 'continues' and
'anticipates' or other words of similar meaning are forward-looking
(although their absence does not mean that a statement is not
forward-looking). Forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances
that are beyond the Group's control. For example, certain insurance
risk disclosures are dependent on the Group's choices about
assumptions and models, which by their nature are estimates. As
such, actual future gains and losses could differ materially from
those that we have estimated.
Other factors which could cause actual results to differ
materially from those estimated by forward-looking statements
include but are not limited to: domestic and global economic and
business conditions; asset prices; market related risks such as
fluctuations in interest rates and exchange rates, and the
performance of financial markets generally; the policies and
actions of governmental and/or regulatory authorities, including,
for example, new government initiatives related to the provision of
retirement benefits or the costs of social care and the effect of
the European Union's "Solvency II" requirements on the Group's
capital maintenance requirements; the impact of inflation and
deflation; market competition; changes in assumptions in pricing
and reserving for insurance business (particularly with regard to
mortality and morbidity trends, gender pricing and lapse rates);
risks associated with arrangements with third parties, including
joint ventures and distribution partners; inability of reinsurers
to meet obligations or unavailability of reinsurance coverage; the
impact of changes in capital, solvency or accounting standards, and
tax and other legislation and regulations in the jurisdictions in
which the Group operates.
As a result, the Group's actual future financial condition,
performance and results may differ materially from the plans, goals
and expectations set out in the forward-looking statements within
this announcement. The Group undertakes no obligation to update any
of the forward-looking statements contained within this
announcement or any other forward-looking statements it may make.
Nothing in this announcement should be construed as a profit
forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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