StockMarketWire.com - Pensions provider Just Group reported Wednesday third-quarter retirement income increased in double digits, supported by continued growth in defined benefit sales.

For the three months to September 30, new business sales rose 17% to £765m, led by a 15% increase in retirement income sales.

Retirement production sales growth was led by a 35% jump in Defined Benefit sales in the quarter, offsetting weaker performance in Guaranteed Income for Like and Care Plan products.

The proposals (CP13/18) issued in July by The Prudential Regulation Authority, or PRA, requiring companies to set aside more capital to protect against the risks from mortgages, owing to falling house prices, were pushed back and would not be implemented before 31 Dec. 2019, the company said.

The proposals had initially been pencilled in for the end of the year. 'A longer implementation period provides greater flexibility to execute any necessary capital management actions,' the company said.

Lifetime Mortgage advances rose 25% to £170m during the third quarter.

'I am pleased to report another excellent quarter, demonstrating the strength of the Group's positioning and strategy. The markets in which we operate are generally buoyant. The Defined Benefit market has seen increased activity all year and the industry pipeline is very strong,' said Rodney Cook, Group Chief Executive Officer.

'In the GIfL market, shopping around continues to grow as a proportion of the total, helped by Financial Conduct Authority initiatives. Customer appetite for lifetime mortgages is increasing and supply from insurers is growing, all helping to stimulate strong market growth.'

'We remain focused on achieving attractive returns on capital from new business and, in anticipation of the potential increase in capital requirements as a result of CP13/18, we have strengthened our pricing discipline further during the quarter. Whilst the price increases will affect sales in the final quarter we remain confident of delivering a strong performance for the year.'

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