A rare deal emerged from the frozen wastelands of the private-equity industry today as Permira struck a £225.5 million deal to buy life insurer Just Retirement after nearly a year of negotiations.

The Stock Exchange-listed insurer, which specialises in selling products to people approaching or in retirement, has accepted the offer at 76p a share. That is almost half the 148p-a-share price at which the business was floated in 2006.

In case long-suffering Just Retirement shareholders do not want Permira's cash, the bidder is also making available a new shares scheme in the business, offering a chance to benefit from any improvement in the value.

Permira, whose bid vehicle is called Avalon, has committed to pump £25 million into the business after the takeover goes ahead.

Chief executive Mike Fuller's 22.5 million shares are valued at just over £17 million by the deal. Fuller was a co-founder of the business in 2004. The 62-year-old will stay with the firm and is only cashing in around £4 million of his shares.

Credit Suisse acted as adviser to Permira and Deutsche Bank represented Just Retirement in protracted negotiations that started before last November but were hampered by the financial crisis.