Opened small position in Partnership Assurance at 143 this morning (Current Price c 135). Will look to pick a few more up at c122 if we get down there again today. (Should have used yesterday’s low as level rather than close – ahh well…)
Yesterday the budget announced the removal of the requirement to buy an annuity for those with defined contribution pensions. As annuities are horrible value and make up practically all Partnership Assurance’s business the reaction was, severe. The share fell from 300 in the morning to close at 143.
I think this is overdone. I am not an insurance co expert so if I make any obvious mistakes please feel free to let me know