REG - Just Group plc - Business update for the year ended 31 Dec 2024

JustAnnouncement

15/01/2025 07:00

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RNS Number : 3336T  Just Group PLC  15 January 2025

 

                www.justgroupplc.co.uk

 NEWS RELEASE

 

15 January 2025

JUST GROUP plc

2024 Retirement Income sales up 36% to £5.3bn

 

Just Group plc ("Just", the "Group") announces a business update for the year
ended 31 December 2024.

 

David Richardson, Group Chief Executive, said:

"Our performance in 2024 once again proves the strength of our business model,
with strong growth achieved across both our Defined Benefit and Retail
businesses. Just's success is driven by our market insight, risk selection and
our ability to provide innovative solutions for the DB and retail markets.
This is underpinned by continuous investment in the capabilities required to
grow sustainably, as demonstrated by the completion of our largest DB
transaction to date, at £1.8bn.

I am extremely grateful to my colleagues, for their commitment in making 2024
another year of fantastic delivery and I am very proud that we have been able
to help more people than ever achieve a better later life.

As we communicated at our H1 24 results, we expect 2024 operating profit to
substantially exceed a doubling of 2021 operating profit. Our successes in
2024 and positioning in strong markets together with the ongoing tailwind from
higher long-term rates give us confidence in our prospects for 2025 and
beyond. We are very excited about the future for Just."

Highlights
 ·                                 Retirement Income sales (shareholder funded) up 36% to £5.3bn, driven by both
                                   Defined Benefit De-risking ("DB") and Guaranteed Income for Life ("GIfL").
                                   Total Retirement Income sales, which includes DB Partner, were up 49% to
                                   £6.4bn.
 ·                                 DB sales (shareholder funded) up 43% to £4.3bn, with total sales, including
                                   DB Partner, up 57% to £5.4bn. We completed 129 transactions during the year
                                   (2023: 80 transactions), an all-time single year record for the industry.
                                   Since market entry, we have completed over 500 transactions, of which over
                                   half have been in the last three years, further demonstrating the strength of
                                   our market proposition.
 ·                                 Just completed its largest DB transaction to date; a £1.8bn full buy-in with
                                   the Trustee of the G4S Pension Scheme. We have all the capabilities in place
                                   to deliver de-risking solutions for small, medium and large DB schemes, which
                                   supports our confidence in the future.
 ·                                 GIfL sales up 16% to £1.0bn, as we maintain pricing discipline in a strong
                                   market. In response to recent FCA scrutiny, financial advisers have been
                                   prompted to ensure their advice processes treat spenders differently to
                                   savers. Following these policy interventions, together with higher long term
                                   interest rates, we have observed greater utilisation of guaranteed income
                                   solutions, driving higher growth in the market.
 ·                                 Illiquid asset origination(1) increased by 40% to £2.4bn (2023: £1.7bn),
                                   which supports our new business pricing, while also diversifying the in-force
                                   asset backing portfolio. Of this, £1.0bn was sourced internally by our
                                   expanded Investments team, demonstrating the flexibility and scalability of
                                   our origination model, in addition to lifetime mortgages.
 ·                                 New business strain is expected to be below 2% and, as previously guided, FY
                                   24 new business margins are expected to be lower than H1 24, principally
                                   driven by business mix. We have maintained pricing discipline and a continued
                                   focus on risk selection, derived from our unique insight and positioning in
                                   strong markets.

 

 Just Group new business(2)                       Year ended  Year ended  Change

                                                  31/12/24    31/12/23
                                                  £m          £m          %
 Defined Benefit De-risking                       4,275       2,999       43
 Guaranteed Income for Life                       1,033       894         16
 Retirement Income sales (shareholder funded)     5,308       3,893       36
 DB Partner (funded reinsurance)(3)               1,101       416         165
 Total Retirement Income sales                    6,409       4,309       49

 Note: Total Defined Benefit De-risking sales(4)  5,376       3,415       57

 

 

Note 1: Illiquid asset origination is the sum of Illiquid assets (54
investments) and shareholder backed lifetime mortgages (£2,077m + £326m =
£2,403m, leading to a 45% illiquid backing ratio on £5,308m of Retirement
Income sales - shareholder funded)

Note 2: Numbers in table subject to rounding

Note 3: 2024 DB Partner comprises a single transaction as announced on 14
November 2024 (2023: 1 transaction)

Note 4: Total Defined Benefit De-risking sales is the sum of Defined Benefit
De-risking and DB Partner (£4,275m + £1,101m = £5,376m)

 

All the figures are unaudited

 

 FINANCIAL CALENDAR                                     DATE

 Results for the year ended 31 December 2024            7 March 2025
 Annual General Meeting                                 8 May 2025
 Interim results for the six months ended 30 June 2025  7 August 2025 (provisional)

 

 

 

 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           Sam Livingstone

                                      Telephone: +44 (0) 20 7183 1190

                                      just@templebaradvisory.com

 

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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