REG - Just Group plc - BUSINESS UPDATE FOR YEAR ENDED 31 DECEMBER 2023

JustAnnouncement

18/01/2024 07:00

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RNS Number : 0662A  Just Group PLC  18 January 2024

 

                www.justgroupplc.co.uk

 NEWS RELEASE

 

18 January 2024

JUST GROUP plc

BUSINESS UPDATE FOR THE YEAR ENDED 31 DECEMBER 2023

 

Just Group plc ("Just", the "Group") announces a business update for the year
ended 31 December 2023.

 

Highlights

 

 ·                                 Shareholder funded Retirement Income sales up 24% to £3.9bn, driven by both
                                   Defined Benefit De-risking ("DB") and Guaranteed Income for Life ("GIfL").
                                   Total Retirement Income sales, which includes DB Partner, were up 27% to
                                   £4.3bn.
 ·                                 Total DB sales were up 21% to £3.4bn. We completed 80 transactions during the
                                   year (2022: 56 transactions), driven by our proprietary bulk quotation
                                   service. LCP(4) estimate that 2023 industry volumes were c.£50bn, a new
                                   record, with this strong momentum to carry into 2024.
 ·                                 Retail sales were up 59% to £0.9bn. The GIfL market was its largest since the
                                   introduction of Pension Freedoms in 2014, driven by higher interest rates,
                                   which stimulated customer and advisor demand. We believe that GIfL market
                                   growth is also benefiting from the introduction of the FCA's Consumer Duty,
                                   which is prompting advisers to help customers achieve their objectives by
                                   carefully considering all retirement income products.
 ·                                 Other illiquid asset origination(5) increased by 50% to £1.6bn (2022:
                                   £1.0bn), which supports our new business pricing, while also diversifying the
                                   in-force asset backing portfolio. This demonstrates the scalability of our
                                   "manager of managers" origination model.
 ·                                 New business strain is again expected to be below 2% and H2 23 new business
                                   margins are expected to be higher than the 8.5% achieved in H1. We have
                                   maintained strong pricing discipline and a continued focus on risk selection,
                                   derived from our unique insight and positioning in buoyant markets.

 

2023 Retirement Income sales up 24% to £3.9bn

 

 Just Group new business(1)                       Year ended  Year ended  Change

                                                  31/12/23    31/12/22
                                                  £m          £m          %
 Defined Benefit De-risking                       2,999       2,568       17
 Guaranteed Income for Life(2)                    894         564         59
 Retirement Income sales (shareholder funded)     3,893       3,131       24
 DB Partner (funded reinsurance)                  416         259         61
 Total Retirement Income sales                    4,309       3,390       27

 Note: Total Defined Benefit De-risking sales(3)  3,415       2,827       21

 

 

David Richardson, Group Chief Executive, said:

"Our performance in 2023 further demonstrates the strength of our new business
model, with another year of exceptional delivery against our ambitious growth
plans. Our success is underpinned by the sheer number of DB opportunities
available, scheme funding at record levels, and our capability to provide
innovative solutions consistently across the entire market. Furthermore, the
GIfL market has been revitalised by higher interest rates, while regulatory
change has stimulated advisers to consider carefully all product options to
achieve their customers' objectives.

I am once again very grateful to my colleagues, who with their commitment and
hard work continue to deliver so much success. In doing so, we fulfil our
purpose to help more people achieve a better later life. We are well
positioned to continue benefiting from the long term growth drivers and
positive developments in both of our markets, and are very optimistic about
what we can achieve in the years ahead.

Our successes in 2023 and positioning in buoyant markets give us increased
confidence in our prospects for 2024. These strong foundations enable us to
continue delivering 15% growth in underlying operating profit per annum, on
average over the medium term."

 

Note 1: Numbers in table subject to rounding

Note 2: Care Plan sales are now reported within the GIfL figure, and were
£48m in 2023 (2022: £44m)

Note 3: Total Defined Benefit De-risking sales is the sum of Defined Benefit
De-risking and DB Partner (£2,999m + £416m = £3,415m)

Note 4: LCP - a leading employee benefit consultant

Note 5: In addition to £1.55bn of other illiquids, Just also funded £164m of
lifetime mortgage assets

 

All the figures are unaudited

 

 FINANCIAL CALENDAR                                     DATE

 Results for the year ended 31 December 2023            7 March 2024 (provisional)
 Annual General Meeting                                 7 May 2024
 Interim results for the six months ended 30 June 2024  8 August 2024 (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           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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