The business sales of Just Retirement sunk by nearly £50m in the three months before it merged with Partnership, it was revealed this morning.

The company reported today there was an 18% drop off in sales overall compared to the same quarterly period last year (ending 31 March), falling to £227 million. In 2015 sales stood at £276 million.

The merger to form JRP Group was completed on 4 April and the company confirmed today it was pressing ahead with making £40m saving in operating costs.

Retirement income sales, in the three months leading up to this, dropped by 30%, from £202m to £142m. Drawdown sales plummeted in the same period from £11m to £1.7m.

Total retirement sales on a pro forma JRP combined basis fell from £311 to £236m, a decrease of 24%.

The nine monthly figures for Just Retirement alone showed, however, an increase in sales, rising by 33%.

Just Retirement’s Defined Benefit De-risking sales in were up 66% over the nine month spell and were driven by the strong December 2015 quarter ahead of the implementation of Solvency II.

Quarter 1 2016 sales, in contrast, dropped 54% compared to calendar Q1 2015 - which the firm said it expected.

Its combined Guaranteed Income for Life and Care sales were 2% higher in nine months of 15/16 than in the comparative period. Together with DB this drove a 30% increase in JR's 9M 15/16 Total Retirement sales, the company reported.

Rodney Cook, group chief executive, said: “Our focus remains very clear: we will continue to deliver on business as usual, whilst executing the merger cost synergies of at least £40m. Now the merger is effective we can offer even better value to customers, investors and business partners, and I look forward to demonstrating our potential as JRP."

He described the beginning of the calendar year as “a solid start”.

He said: “Our merger with Partnership didn't become effective until after the quarter end, but Partnership's calendar Q1 2016 sales held up well in the individual market, and the combined Group would have had a steady first quarter.

“I remain positive about the future, and we reiterate the outlook comments we made at our recent interim results. The long term future for the DB market looks buoyant, while the improving trend in the individual GIfL market appears to be continuing.”