The government's pension reforms will force annuity providers to "up their game", meaning "good news for consumers", Pensions Minister Steve Webb says.
Some providers' share prices tumbled following the announcement of the measures, but Mr Webb told ITV News' Deputy Political Editor that such big announcements require confidentiality.
The pension changes announced in the Budget yesterday are a risk and based on "highly uncertain assumptions", according to a think tank.
Critics warn the major changes to retirement savings could leave pensioners short if they don't make the right decisions.
The annuity provider welcomed the Chancellor's pensions changes despite the firm's share price dropping 8% after the Budget announcement.