Clerical Medical has closed its group pensions business to new schemes due to a cluttered market and poor profit†margins.
The company will not open any new†group pension schemes from 16 April 2007, but will continue to provide its existing group schemes. It has employed a team of 10 group pensions†specialists to look at building services for existing schemes and plans to focus on customer service for existing schemes.
A spokeswoman at Clerical Medical said: "We are seeing schemes moving from one provider to another whereas individual pensions is a very large growth area for us and a large growth area for the market, so we are focusing our efforts on areas of growth and an area where we have strength."
The company’s future strategy will focus on individual pensions; existing group pension schemes; bonds and investments.
Keith Gilmour, head of Clerical Medical, said: "Retention is key in the group pensions business. A focus on existing group pension clients, rather than chasing new business in what is a cluttered market characterised by schemes moving from one provider to another, makes good business sense."