'Surprise factor' caused pension provider share price drop

The drop in share prices experienced by pension providers was largely driven by the "surprise factor" of Chancellor George Osborne's industry reforms, the head of the Association of British Insurers Otto Thoresen has said.

His comments come after Mr Osborne announced in his Budget that from 2015, pensioners will have the freedom to cash in as much or as little of their pension pot as they want, removing the need to buy an annuity.

Speaking to BBC Radio 4's Today programme, independent financial advisor Kerry Nelson added that the chancellor's changes were a result of people wanting "more choice" in the market.

First broadcast on BBC Radio 4's Today programme on Thursday 20 March.