UK pensions shake-up throws insurance industry into turmoil

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UK pensions shake-up throws insurance industry into turmoil

<p><a href="http://news.yahoo.com/uk-pensions-shake-throws-insurance-industry-turmoil-140035205--sector.html"><img src="http://l3.yimg.com/bt/api/res/1.2/gJqly3RO7RGUn9mCNrkIEQ--/YXBwaWQ9eW5ld3M7Zmk9ZmlsbDtoPTg2O3E9NzU7dz0xMzA-/http://media.zenfs.com/en_us/News/Reuters/2014-03-20T162917Z_1_CBREA2J12XJ00_RTROPTP_2_BRITAIN-BUDGET.JPG" width="130" height="86" alt="Britain's Chancellor of the Exchequer, Osborne, leaves number 11 Downing Street, before delivering his budget to the House of Commons, in central London" align="left" title="Britain's Chancellor of the Exchequer, Osborne, leaves number 11 Downing Street, before delivering his budget to the House of Commons, in central London" border="0" /></a>By Chris Vellacott and Jemima Kelly LONDON (Reuters) - Britain's insurers will lose control of a market worth 15 billion pounds ($25 billion) a year under a surprise pension reform announced by the government, and will struggle to make up the hit to profits any time soon, according to analysts. This dismantles a captive market for annuity providers such as Legal &amp; General and Resolution, which will now have to compete for pensions business against other investment products. Their shares dropped sharply on Wednesday, and analysts see little prospect of a rapid recovery. &quot;This radical piece of legislation will destroy profitability in the highly lucrative annuity market, in our view,&quot; said RBC Capital Markets insurance analyst Gordon Aitken.</p><br clear="all"/>

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