Permira Cuts Just Retirement Stake 10% After Shares ReboundSarah Jones
Just Retirement Group Plc’s private-equity owner Permira Holdings reduced its stake in the U.K. insurer by 10 percent, taking advantage of a rebound in the stock.
Permira sold 50 million shares at 162 pence apiece, raising 81 million pounds ($123 million) and cutting the firm’s holding in the U.K. annuity provider to 52 percent, according to a statement Thursday. The shares fell 7 percent to 162.3 pence by 12:30 p.m. in London, the biggest intraday decline since October and trimming 2015 gains to 9.7 percent.
Just Retirement soared 22 percent last week after the insurer surprised investors by reporting 17 corporate annuity deals in the six months through December, helping to offset a 58 percent drop in individual annuities sold to retirees.
The insurer had seen its market value fall by almost half since Chancellor of Exchequer George Osborne’s 2014 budget scrapped rules that pushed retirees to buy an annuity product, threatening a key source of revenue.
Partnership Assurance Group Plc, owned by Cinven Partners, this week reported a 51 percent drop in full-year operating profit even as revenue from its bulk annuity business almost tripled in 2014. Cinven still owns a 52 percent stake.