Paramount Life launched South Africa's first lifetime guaranteed Enhanced
Annuity over 8 years ago. Our Enhanced Annuity has been well received by
customers and there is little doubt that there is demand for properly designed annuities
that enhance and simplify the provision of retirement income.
Paramount Life anticipated legislation that would, on an ongoing basis,
be conducive to the provision of cost effective retirement income. As a direct
result of changes in legislation, our ability to continue to provide new annuities
at competitive rates has proved challenging.
We have therefore made the difficult decision to stop selling new annuities
effective 30 June 2018.
The above decision will have no impact on Paramount Life annuities already
in issue. These annuities will continue on a business-as-usual basis and annuitants
will continue to receive their income in accordance with their policy terms and
conditions. Existing annuitants are welcome to continue to make contact with Paramount
Life as they have in the past. All Paramount Life annuities continue to be underwritten,
and therefore guaranteed, by Guardrisk
Life a subsidiary of MMI - one of South Africa’s largest insurance companies. Existing
Annuitants therefore have nothing to be concerned about - nothing will change.
We sincerely thank all stakeholders for their
support to date and commit to fulfilling our existing obligations to our annuitants.