Partnership Assurance shares took another tumble today after the pension provider, which floated last year, admitted sales had been hit by regulatory reforms.
The company, which sells annuities to pensioners who are ill or are heavy smokers, has seen its share price fall by more than a fifth since it listed on the London Stock Exchange last June at 385p.
Today shares were down almost 9% to 292p after it reported a 3% fall in premiums last year and warned sales during the first quarter will be lower than in the last three months of 2013, when they fell 27% year-on-year.
The group, chaired by LSE chairman Chris Gibson-Smith, blamed regulatory changes, including reforms to how financial products are sold in the UK, for the fall. It said financial advisers had encouraged customers to make their purchases in 2012.
“The regulatory changes that occurred at the end of 2012 have had a deeper and longer impact on the retirement and care annuity markets than we foresaw,” said boss Steve Groves.
Despite the falling sales, Partnership’s pre-tax profits rose 24% to £83 million last year and it said it would pay a maiden final dividend of 3p.
But its volatile share price has cast doubt on whether the company should have been listed in such tough market conditions. Rival Just Retirement floated in November and saw its shares fall below the 225p offer price — although they are now about 269p.
