Partnership Assurance : Cost Management Proposal

23 June 2014

Partnership Assurance Group plc ('Partnership') announces cost management proposals

Partnership has today announced further cost management proposals, in addition to those in its Q1 Interim Management Statement.  It is anticipated that these proposals will result in the loss of approximately 100 roles across its London and Redhill offices.

Together with the actions already taken, these proposals are expected to generate annualised cost savings of £21 million in 2015, resulting in anticipated total operating expenses in 2015 of approximately £80 million.

Partnership expects to incur non-recurring costs totalling £3 million during 2014 in implementing these changes , and a further £5 million during 2014 and 2015 in supporting new initiatives, including product development.

Partnership announces its HY14 results on 14 August 2014.

Steve Groves, CEO, commented:

"Partnership is announcing today that it is entering into a consultation process with employees, which it is anticipated will result in the loss of approximately 100 roles across its London and Redhill offices. Whilst this is regrettable, we believe this action is necessary to manage our cost base to reflect the impact of the pension changes announced in the Budget on sales of individual annuities across the industry.

"We have undertaken a thorough review of our cost base and are targeting annualised cost savings totalling £21 million in 2015 compared with our planned 2015 cost base. This target takes into account the anticipated impact of lower levels of individual annuity sales, offset by targeted investment to develop areas of the business where we believe the greatest opportunities lie for us to leverage our intellectual property and expertise.

"It is our intention that the decisive action we have announced today will deliver the necessary alignment of our cost base required for the business to thrive in our new environment."

Enquiries