REG - Just Group plc - Business update for the six months to 30 June 2023

JustAnnouncement

18/07/2023 07:00

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RNS Number : 2926G  Just Group PLC  18 July 2023

 NEWS RELEASE  www.justgroupplc.co.uk

 

18 July 2023
JUST GROUP plc
STRONG MOMENTUM CONTINUES

 

Just Group plc ("Just", the "Group") announces a business update for the six
months ended 30 June 2023.

Highlights
 ·      Retirement Income sales have more than doubled to £1.9bn.
 ·      DB sales are up 149% to £1.4bn. We completed 35 transactions
 during the period (H1 22: 14 transactions). The DB market has been
 consistently busy this year, and we expect this momentum to continue.
 ·      Retail sales are up 54% to £0.5bn. The retail annuity market is
 buoyant, as higher interest rates have increased the guaranteed returns from
 annuities, and made them significantly more attractive to financial advisers
 and customers.
 ·      Given the strong new business growth in the first half of 2023,
 we are highly confident of achieving our financial ambitions for the full
 year. Our delivery so far in 2023 and positive ongoing momentum further
 supports  our confidence in Just's ability to deliver 15% growth in
 underlying operating profit per annum, on average over the medium term.

 

Retirement Income sales for H1 23 up 116% to £1.9bn

 

 Just Group new business(1)             6 months to  6 months to  Change

                                        30/06/23     30/06/22
                                        £m           £m           %
 Defined Benefit De-risking ("DB")      1,429        574          149
 Guaranteed Income for Life ("GIfL)(2)  470          305          54
 Retirement Income sales                1,899        879          116

 

The rise in interest rates during 2022 and 2023 has a positive effect on both
the DB and GIfL markets.

In DB, LCP(3) estimate that c.1,000 DB pension schemes (or one-in-five of the
total) are already fully funded on an insurer buyout basis. In 2022, there
were 201 DB transactions, of which Just completed 56. 2023 industry volumes
are expected to significantly exceed the record £44bn written in 2019.

DB business highlights during the first six months of the year include:

 ·      Writing our largest (£513m) and smallest (£0.6m) deals to date.
 ·      Completed 35 transactions of which 22 were less than £10m.
 ·      The bulk quotation service now has over 200 schemes from 19 EBCs.

The GIfL market has had its busiest six month period since Pensions Freedoms
in 2014. The open market, where Just competes, has achieved particularly
strong growth. Higher interest rates have stimulated both customer and adviser
demand. The introduction of the FCA's Consumer Duty, and the findings from the
FCA's thematic review into retirement income advice, are likely to increase
the use of guaranteed solutions to help customers achieve their objectives.

David Richardson, Group Chief Executive, said:

"Following three years of delivering 18% average sales growth per annum, we
have further demonstrated the strength of our new business model with sales in
the first six months more than doubling year on year.

Our DB business is going from strength to strength. During the last six
months, we have announced our largest transaction to date at over £500m, and
have a record pipeline of new business opportunities for the second half. Our
bulk quotation service is growing in popularity and providing a steady source
of completions as EBCs and trustees are increasingly seeing the benefits of
price monitoring.  We welcome the Chancellor's confirmation, in his recent
speech, of the important role played by insurers offering buyouts.

I am delighted that the GIfL market has returned to strong growth, and
providing increased opportunity to utilise our medical underwriting expertise
to risk select. The combination of higher interest rates and new FCA rules
should further encourage advisers to re-examine the attractiveness of
guaranteed solutions, especially for older clients.

I am once again very grateful for the achievements of our colleagues, which
enables us to help more people achieve a better later life. We are
exceptionally well positioned to continue benefiting from the unstoppable
trends and positive developments in both our markets. Our ability to take
advantage of these trends and execute have further increased our confidence in
Just's ability to deliver 15% growth in underlying operating profit per annum,
on average over the medium term."

 

 

 FINANCIAL CALENDAR                                     DATE

 Interim results for the six months ended 30 June 2023  15 August 2023

 

Note 1: Numbers in table subject to rounding

Note 2: Care Plan sales are now reported within the GIfL figure. This figure
now includes UK GIfL, South Africa GIfL and Care

Note 3: LCP, an employee benefit consultant

Note 4: All the figures are unaudited

 

 Enquiries

 Investors / Analysts                 Media

 Alistair Smith, Investor Relations   Stephen Lowe, Group Communications Director

 Telephone: +44 (0) 1737 232 792      Telephone: +44 (0) 1737 827 301

 alistair.smith@wearejust.co.uk       press.office@wearejust.co.uk

 Paul Kelly, Investor Relations       Temple Bar Advisory

 Telephone: +44 (0) 20 7444 8127      Alex Child-Villiers

 paul.kelly@wearejust.co.uk           William Barker

                                      Telephone: +44 (0) 20 7183 1190

 

A copy of this announcement will be available on the Group's website
www.justgroupplc.co.uk

 

JUST GROUP PLC

GROUP COMMUNICATIONS

Enterprise House

Bancroft Road

Reigate

Surrey RH2 7RP

 

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