Key Retirement Solutions buys Annuity People
14 November 2012
Key Retirement Solutions has completed the purchase of Annuity People, the leading specialist annuity broking service for IFAs, as part of the expansion of its retirement income business.
The acquisition of Annuity People, founded by Malcolm Thomas and Jeremy Martell, based in Camberley, Surrey, builds on Key's existing direct to consumer annuity business which has grown to be one of the largest independent annuity desks.
The two companies began working together in July when clients of Annuity People, headed by Managing Director Malcolm Thomas, were referred to Key after Honister Capital went into administration leaving its Appointed Representatives unable to write new business.
Key's acquisition of the business enables the two companies to expand the IFA annuity service in a rapidly growing market where the Retail Distribution Review means offering a strong referral service will be essential for advisers.
Annuity People carries out all research and administration for IFAs, Occupation Scheme Trustees, Benefit Consultants and other Financial Advisers ensuring clients receive the best possible deal for their pension fund.
Dean Mirfin, Group Director of Key Retirement Solutions, said: "The purchase of Annuity People expands our referral proposition which we have operated for more than 10 years for equity release.
"Annuity People have built a solid reputation for delivering a high quality business to business annuity desk and we plan to strengthen and expand the service. We look forward to working with Malcolm and his team."
Malcolm Thomas, Managing Director of Annuity People said: "This next step in our growth will provide not only for a step change in capacity but also enable us in a position to pay referral partners up to 1.25% of the fund value for each completed case. Key Retirement Solutions and I have great ambitions for Annuity People and I am pleased to be remaining at the helm to share in the future success of the company."
Key Retirement Solutions launched its annuity service in July 2010. Clients using its free whole of market annuity service have gained an average 21% over their original quote - equivalent to an extra £264 a year on the median £25,000* pension fund paying around £1,260 a year.
It believes the Code of Conduct launched by the Association of British Insurers on retirement income plus the growing number of customers utilising the Open Market Option in annuities will further boost growth for its service.
Notes to Editors
* DCisions quoted in NAPF and The Pension Institute report "Treating DC scheme members fairly in retirement" and annuity rates sourced from top 10 rates quoted on http://www.find.co.uk/pensions/annuities_centre/annuities-calculator