By law, an annuity contract can only be issued by an insurance company.

Before annuitisation, the deferred annuity contract may allow additional purchase premium payments to be added, increasing the contract's value.

They were sold mainly in the 1970s and 1980s, usually alongside retirement annuity contracts.

Sales of these plans are outstripping those of annuity contracts, which are how savers have traditionally converted pension pots into income.

The cell may issue insurance or annuity contracts, reinsure such contracts, or facilitate the securitization of obligations of a sponsoring insurance company.