REG - Just Group plc - INTERIM RESULTS FOR THE 6 MONTHs ENDED 30/6/2025
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RNS Number : 3424U Just Group PLC 07 August 2025
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NEWS RELEASE justgroupplc.co.uk
7 August 2025
JUST GROUP PLC
RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025
BUILDING LONG-TERM VALUE
Just Group plc (the "Group", "Just") announces its results for the six months
ended 30 June 2025.
David Richardson, Group Chief Executive Officer, said:
"I am pleased with the performance in the first six months of 2025,
particularly given the quieter level of transactions in the DB market at the
beginning of the year. With multiple opportunities available to us, the second
half of the year is already shaping up to deliver a strong six months of sales
for the Group.
We remain disciplined, continue to execute strongly and are investing in the
business to support our future growth. We are putting all the building blocks
in place to build on the substantial progress we've delivered.
We operate in fundamentally attractive markets, and are confident in our
ability to consistently compound value."
Outperformance in markets affected by timing
· Underlying operating profit(1) £192m (H1 24: £249m) driven by lower new
business margins on lower sales, offset by higher recurring in-force profit.
· Retirement Income sales(1) at £2.2bn (H1 24: £2.5bn). DB sales were £1.6bn,
down 13%, but have outperformed a slower market that is expected to rebound
strongly in the second half. Maintaining our small scheme leadership position,
with 61 transactions completed (H1 24: 55). Retail sales of £0.5bn are also
down 13% on H1 24, but are up 20% on H2 24.
· New business margins remain attractive at 7.5% (H1 24: 9.0%, H2 24: 8.4%). The
reduction was due to a combination of tighter spreads, increased competition,
business mix and lower volumes. This margin has been supported by the strength
of our DB small scheme proposition and GIfL medical underwriting capability.
Strong sales outlook for H2 25
· As of the end of July, the DB business has written or is exclusive on £0.4bn.
We have a strong pipeline of small, medium and large transactions in a busy
and competitive DB market.
Solvency II and IFRS performance
· Capital coverage ratio is a robust and resilient 198%(2) (31 December 2024
proforma: 204%(2)). The interest rate and property sensitivities remain low.
· New business strain(1) at 1.1% (H1 24: 1.5%) is well inside our target of
below 2.5% of premium. On shareholder capital invested in new business, we are
achieving very attractive IRRs in excess of our "mid-teens" target.
· Cash generation before new business capital strain has increased to £63m (H1
24: £58m).
· Adjusted profit before tax(1) was £217m (H1 24: £267m) due to lower
underlying profit. Of this £217m Adjusted profit before tax, £152m of profit
is deferred to the CSM(3) , leaving an IFRS profit before tax of £65m (H1 24:
£74m).
Delivering shareholder value
· Tangible net assets per share(1) grew to 267p, (31 December 2024: 254p).
· Dividend of 0.84p per share, 20% growth reflecting confidence in the strong
fundamentals and future prospects of the business.
Notes
1 Alternative performance measure ("APM") - In addition to statutory
IFRS performance measures, the Group has presented a number of non-statutory
alternative performance measures. The Board believes that the APMs used give a
more representative view of the underlying performance of the Group. APMs are
identified in the glossary at the end of this announcement and reconciled to
IFRS measures in the Business Review and Segmental note.
2 Solvency capital coverage ratios as at 30 June 2025 and 31
December 2024 include a recalculation of transitional measures on technical
provisions ("TMTP") as at the respective dates. The 2024 ratio is presented
after the impact of the pre-funded repayment of Tier 3 debt in February 2025.
3 Contractual Service Margin.
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, Sam Livingstone
paul.kelly@wearejust.co.uk Telephone: +44 (0) 20 7183 1190
just@templebaradvisory.com
A copy of this announcement and the accompanying analyst and investor slides
will be available on the Group's website www.justgroupplc.co.uk.
FINANCIAL CALENDAR DATE
Ex-dividend date for interim dividend 14 August 2025
Record date for interim dividend 15 August 2025
Payment of interim dividend 15 September 2025
The Results will be available shortly on the Just Group website at
https://www.justgroupplc.co.uk/investors/results-reports-and-presentations and
has been submitted in full unedited text to the Financial Conduct Authority's
National Storage Mechanism and will be available shortly for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
JUST GROUP PLC
GROUP COMMUNICATIONS
Enterprise House
Bancroft Road
Reigate
Surrey RH2 7RP
CAUTIONARY STATEMENT AND FORWARD-LOOKING STATEMENTS
This announcement has been prepared for, and only for, the members of Just
Group plc (the "Company") as a body, and for no other persons. The Company,
its Directors, employees, agents, and advisers do not accept or assume
responsibility to any other person to whom this document is shown or into
whose hands it may come, and any such responsibility or liability is expressly
disclaimed.
By their nature, the statements concerning the risks and uncertainties facing
the Company and its subsidiaries (the "Group") in this announcement involve
uncertainty, since future events and circumstances can cause results and
developments to differ materially from those anticipated. This announcement
contains, and we may make other statements (verbal or otherwise) containing,
forward-looking statements in relation to the current plans, goals and
expectations of the Group relating to its or their future financial condition,
performance, results, strategy and/or objectives (including, without
limitation, climate-related plans and goals). Statements containing the words
'believes', 'intends', 'expects', 'plans', 'seeks', 'targets', 'continues',
'future', 'outlook', 'potential' and 'anticipates' or other words of similar
meaning are forward-looking (although their absence does not mean that a
statement is not forward-looking). Forward-looking statements involve risk and
uncertainty because they are based on information available at the time they
are made, based on assumptions and assessments made by the Company in light of
its experience and its perception of historical trends, current conditions,
future developments and other factors which the Company believes are
appropriate. These statements relate to future events and depend on
circumstances which may be or are beyond the Group's control. For example,
certain insurance risk disclosures are dependent on the Group's choices about
assumptions and models, which by their nature, are estimates. As such,
although the Group believes its expectations are based on reasonable
assumptions, actual future gains and losses could differ materially from those
that we have estimated. Other factors which could cause actual results to
differ materially from those estimated by forward-looking statements include,
but are not limited to: domestic and global political, economic and business
conditions (such as the longer-term impact from the COVID-19 outbreak or the
impact of other infectious diseases, climate change, foreign trade policies
(including the imposition of tariffs, increasing the risk of trade tensions),
the conflict in the Middle East, and the continuing situation in Ukraine);
asset prices; market-related risks (such as fluctuations in interest rates,
exchange rates, and the performance of financial markets generally); the
policies and actions of governmental and/or regulatory authorities (including,
for example, new government initiatives related to taxation (including
employers National Insurance contributions, capital gains tax and inheritance
tax), pensions legislation and regulations or the costs of social care or
climate action, particularly the transition to net zero); the impact of
inflation and deflation on both market conditions and customer behaviours, and
evolving advice needs; market competition; failure to efficiently and
effectively respond to climate-change related risks and the transition to a
net zero economy; changes in assumptions in pricing and reserving for
insurance business (particularly with regard to mortality and morbidity
trends, gender pricing and lapse rates); risks associated with arrangements
with third parties, including joint ventures and distribution partners and the
timing, impact and other uncertainties associated with future acquisitions,
disposals or other corporate activity undertaken by the Group and/or within
relevant industries; inability of reinsurers to meet obligations or
unavailability of reinsurance coverage; default of counterparties; information
technology or data security breaches including cybersecurity threats and the
rapid pace of technological change (including the role of artificial
intelligence and machine learning); the impact of changes in capital, solvency
or accounting standards; and tax and other legislation and regulations in the
jurisdictions in which the Group operates (including changes in the regulatory
capital requirements, which the Company and its subsidiaries are subject to).
As a result, the Group's actual future financial condition, performance and
results may differ materially from the plans, goals and expectations set out
in the forward-looking statements.
The forward-looking statements are current only as at the date of this
document, and reflect knowledge and information available at the date of
preparation of this announcement. The Group undertakes no obligation to update
these forward-looking statements or any other forward-looking statement it may
make (whether as a result of new information, future events or otherwise),
except as may be required by law. Persons receiving this announcement should
not place undue reliance on forward-looking statements. Past performance is
not an indicator of future results. The results of the Company and the Group
in this announcement may not be indicative, and are not an estimate, forecast
or projection of, the Group's future results. Nothing in this announcement
should be construed as a profit forecast.
Chief Executive Officer's Statement
We have made a good start to the year as we focus on building significant
long-term value. We have outperformed a DB market that has had a more
pronounced quiet start to the year. This has led to a 13% fall in total
shareholder funded sales to £2.2bn, which has delivered underlying operating
profit of £192m, down 23%, for the first half of the year. We look forward to
a much busier second six months of the year with a strong pipeline of DB
business. Both our DB and retail businesses are benefitting from long-term
structural trends, and we are committed to compounding the growth in value of
the business. During the first six months of 2025, we have increased the
Group's tangible net asset value by a further 13p to 267p per share.
DEFINED BENEFIT DE-RISKING BUSINESS
I am extremely pleased with the strategic execution of our DB business, which
has had a record first half year in terms of transactions. We completed 61
transactions (H1 24: 55 transactions), which delivered £1.6bn of new
business, down 13% (H1 24: £1.9bn). Nevertheless, this represents an
outperformance compared to the market that we estimate was towards the low end
of £10-15bn (source: XPS) in the first half of 2025 compared to £15bn in H1
24 (source: LCP). The market experienced the usual first half seasonality,
with additional timing effects as some larger schemes paused potential
transactions in anticipation of the government's new pension rules, which were
announced in May. We believe that the insurer solution remains the gold
standard that the vast majority of schemes will eventually choose as they
de-risk in the decades ahead.
We continue to improve our technology offering to meet growing market demand.
Utilisation of our bulk quotation and price monitoring service, Beacon,
continues to increase, with over 350 schemes now onboarded. Since completing
our first £1bn plus transaction in 2024, we have been invited to quote on a
much greater number of larger transactions.
GUARANTEED INCOME FOR LIFE BUSINESS
Our retail business has had a satisfactory first half, with sales of £0.5bn.
Although sales are down 13% on the first six months of 2024, they are up 20%
on the second half of 2024. As 2024 progressed, competition levels in the
market increased, which has continued into 2025. Market demand has remained
strong, but is likely to consolidate at this level in 2025, after a doubling
of the GIfL market in the last two years to £7bn. The adviser channel has led
this growth, and we are investing in our distribution to broaden and deepen
our participation in this market segment, which contains larger pots and
generally healthier lives.
SCALABILITY OF OUR INVESTMENTS CAPABILITY
Our successful illiquid origination strategy enabled us to source £1.0bn of
illiquid investments during H1 25 at attractive spreads above equivalent
public assets. We are continuing to broaden our capabilities, with four fifths
of this total sourced internally by our expanded Investments team. Our
illiquid investments in H1 25 included infrastructure and private placements,
in addition to commercial and lifetime mortgages.
FINANCIAL PERFORMANCE, UNDERLYING OPERATING PROFITS DOWN 23%
In H1 25, underlying operating profit is down 23% to £192m, driven by a
reduction in new business margin on lower sales, offset by higher recurring
in-force profit. New business margin was impacted by the effect on pricing
from a continuing trend of tighter credit spreads, increased competition,
slightly lower volumes, and business mix. We incurred strategic costs as we
invest to develop new propositions and reported non-operating investment and
economic profits, which when combined with other items, resulted in an
adjusted profit before tax of £217m for H1 25 (H1 24: £267m). After allowing
for deferral of profit into the CSM balance sheet reserve, the IFRS profit
before tax is £65m (H1 24: £74m).
We will pay an interim dividend of 0.84 pence per share, in line with our
stated policy, which represents 20% growth over last year's interim dividend.
OUR PURPOSE AND OUR CUSTOMERS
We help people achieve a better later life, that's our purpose and why we
exist. We fulfil that purpose by delivering market-leading products and
award-winning services to over 700,000 customers. Furthermore, we are
continuing to invest to explore how we can help more people, with unmet needs,
across the wider retirement markets.
SUSTAINABILITY
We are committed to a sustainable strategy that protects our communities and
the planet we live on. The most material impact we can make to reduce carbon
emissions is through the decisions we take with our £28bn investments
portfolio, which accounts for over 99% of our carbon footprint. Compared to
our 2019 baseline, we have now reduced these emissions by 45%, which is
excellent progress on our journey to achieving our net zero target.
OUR PEOPLE
We continue to harness the power of our highly talented, ambitious and engaged
colleagues to deliver strong business growth and fulfil our purpose. I would
like to thank all my colleagues for their significant efforts - it's always a
team effort and our people make Just a brilliant place to work.
Our high performance is underpinned by fostering a sense of belonging, and we
were delighted to win Gold at the FT Adviser's Diversity Awards in June.
Securing the award for 'Championing Women's Equality' is testament to our
positive culture where women can succeed.
IN CONCLUSION
Over the three years from 2021-4, underlying operating profit more than
doubled as we successfully executed our strategy. As we look ahead from this
elevated profit level, we remain confident in our ability to compound growth
in the value of the business.
We have multiple opportunities available and structural growth in our chosen
markets. We have a growth mindset, and we've developed a winning formula - one
which will ensure we fulfil our purpose, to help people achieve a better later
life.
BROOKFIELD WEALTH SOLUTIONS' RECOMMENDED OFFER FOR JUST GROUP
On 31 July 2025, we were pleased to announce the recommended cash offer for
Just by Brookfield Wealth Solutions which provides the opportunity for Just
shareholders to realise in cash a certain and fair value for their Just
shares.
DAVID RICHARDSON
Group Chief Executive Officer
Business Review
Building long term value
"Our robust capital position and reduced sensitivities to market and other
risks enable us to sustainably fund our ambitious growth plans from our own
means."
We innovate, risk select and price with discipline, ensuring our business
model delivers long-term value for customers and shareholders. The Business
Review presents the results of the Group for the six months ended 30 June
2025, including IFRS and Solvency II ("SII") information.
The continued growth and success of the business is built on the foundation of
our low capital intensity new-business model, supported by a strong and
resilient capital base. In line with our investment strategy, we continue to
diversify the asset portfolio by originating a wide variety of high quality
investments. We are specifically targeting investment in process
transformation, systems and people to enable the business to scale
efficiently. As we innovate and further broaden our growth strategy, increased
product development investment will be aligned to our purpose to help people
achieve a better later life through the before, at, and in-retirement phases
of life.
SALES
In the first six months of 2025, we delivered Retirement income new business
sales of £2.2bn (H1 24: £2.5bn). DB de-risking sales outperformed relative
to the market during the traditional seasonally quieter first half, driven by
our leadership position in the <£100m small scheme transaction segment.
Following the completion of Just's largest transaction to date, a £1.8bn deal
with the G4S pension scheme in November 2024, we are actively quoting and
selectively participating in the large transaction segment (£1bn+), in
addition to being a major participant in the up to £1bn transaction size part
of the market. In 2024, Just's activity translated into an 11% share by value
of a £48bn DB market that was split c.1/3 in the first half and c.2/3 in the
second half (source: Just analysis). During the first six months of 2025, DB
new business was down 13% to £1,636m from 61 transactions (H1 24: £1,874m
from 55 transactions). We expect to be much busier in the second half of 2025
and beyond, with momentum in all segments as multiple small, medium and large
schemes come to market as corporates of all sizes choose to offload legacy and
complex DB pension risk to insurers. Reflecting the seasonality dynamic, for
2025 year to date, we have signed or are exclusive on £2.0bn of DB business
(2024 as a whole: £4.3bn shareholder funded DB business).
Our Retail business had a satisfactory first half of the year, as customers
continue to benefit from higher and more normalised long-term interest rates,
which directly increase the GIfL rate on offer. This increases the
attractiveness of a guaranteed income relative to other forms of retirement
income. The customer rate can be further improved through bespoke medical
underwriting, in which Just is a market leader. During the six months to 30
June 2025, we wrote £520m of GIfL/Care new business, down 13% year on year
(H1 24: £600m), however the run-rate is consistent with the 2024 sales result
(£1,033m).
PROFIT
For the first six months of the year, underlying operating profit was £192m
(H1 24: £249m), down 23% year on year.
Shareholder funded Retirement Income sales were 13% lower at £2.2bn (H1 24:
£2.5bn), and generated a new business profit of £162m, down 27% (H1 24:
£222m), translating to a new business margin of 7.5% (H1 24: 9.0%). New
business margin was impacted by the effect on pricing from a continuing trend
of tighter credit spreads, increased competition, slightly lower volumes, and
business mix. Growth of the in-force book of business together with continued
higher and more normalised long term interest rates boosted the return on
surplus assets, thereby increasing in-force operating profit, up 11% to £126m
(H1 24: £114m). Finance costs were broadly stable at £36m, and we invested
£16m (H1 24: £14m) in development expenditure regarding new systems and
processes to scale the business efficiently for the future. We delivered a
10.7% Return on equity (annualised) and underlying earnings per share of 13.8p
(H1 24: 15.6% and 18.0p respectively).
In the non-operating items, we incurred strategic expenditure, offset by
investment and economic profits and positive adjustments for items accounted
for in equity, resulting in an adjusted profit before tax of £217m (H1 24:
£267m). After allowing for the deferral of profit into the CSM balance sheet
reserve, the IFRS profit before tax is £65m (H1 24: £74m).
INCREASING SHAREHOLDER VALUE
Strong fundamental and structural drivers in both of our business lines drive
volumes, which combined with Just's strong pricing discipline, market insight
and business mix determine the new business margin, and therefore the
shareholder value we create through new business. In addition, we prudently
reserve for credit default and other risks, and release the excess provisions
and profits earned as the existing book of business unwinds, together with the
return earned on surplus assets into in-force profits.
Each year, the upfront profit delivered from new business increases the
Contractual Service Margin ("CSM") reserve, offset by the profits earned as we
pay the customer pensions due on business written in prior years. Our store of
value (post-tax) grows strongly as the increase in CSM from selling profitable
new business far outweighs the release of CSM stock from the back book.
When added to equity attributable to shareholders (excluding intangible
assets), Just's Adjusted Equity or Tangible Net Assets is 267p per share (31
December 2024: 254p per share), on which we earned a 10.7% annualised return
in H1 25 (H1 24: 15.6%). The internal rate of return ("IRR") on shareholder
capital invested in new business remains well above our "mid-teen" target, as
available capital is tactically allocated to exploit the opportunities
available - both today and in the future. Our objective is to achieve a Return
on Equity of greater than 12%.
CAPITAL
The Group's estimated Solvency II capital coverage ratio remains robust at
198% (31 December 2024: 204%). Organic capital generation at £47m (H1 24:
£42m) was driven by an increase in cash generation to £63m (H1 24: £58m)
and lower new business strain (£23m, 1.1% of new business premium), partially
offset by lower management actions and an increase in development costs as we
invest to scale the business efficiently for the future. The new business
strain as a percentage of premium continues to be well below our 2.5% target,
and 1.5% average over the past five years. This low new business strain
reflects continued strong pricing discipline, focused risk selection and our
ability to originate increasing quantities of high-quality illiquid assets.
Non-operating items summed to £(142)m, which led to the 6% fall in the
capital coverage ratio. This included the £19m shareholder dividend paid
during the period, £(60)m from the effect of rising long term interest rates,
£(22)m from property growth experience, and asset trading timing and other
economic variances of £(34)m. We also incurred £(7)m of strategic expenses
on new retail related propositions. We continue to closely monitor and
prudently manage our risks, including interest rates, inflation, currency,
residential property and credit. The Solvency II sensitivities are set out in
the Capital Management section of the Business Review.
In the second half of 2025, we expect the PRA to publish the results of an
industry wide life insurance stress test ("LIST"). LIST will apply to a
shortlist of UK life insurers and include one core scenario and two additional
exploratory scenarios that build on the first. The results of the core
scenario will be published at a life company level.
OUTLOOK
The trajectory of central bank interest rates will be dependent on how new
government policies and wider macro and geopolitical forces impact the future
level of inflation. These external forces have a negligible impact on the
Group's business model, with the normalisation of long-term interest rates
continuing to drive demand for our products. Our positioning, reputation and
capabilities, including investments in our people enable us to continue to
strongly execute as we take advantage of the multiple growth opportunities in
our chosen markets.
We have a strong and resilient capital base, with a low-strain business model
that is generating sufficient capital on an underlying basis to fund our
ambitious growth plans, whilst also paying a shareholder dividend that is
expected to grow over time.
Alternative performance measures and key performance indicators
The Group uses a combination of alternative performance measures ("APMs") and
IFRS statutory performance measures. The Board believes that the use of APMs
along with the IFRS measures, gives a useful insight into the underlying
performance of the Group.
The Directors have concluded that the principles used as a basis for the
calculation of the APMs remain appropriate. Just Group has been growing
strongly for a number of years and regards the writing of profitable new
business contracts as a key objective for management. As a result, in
management's view, the use of a performance measure which includes the value
of profits deferred for recognition in future periods is a useful alternative
to IFRS profits under IFRS 17 which exclude the deferred profits from new
business sales.
Further information on our APMs can be found in the glossary, together with a
reference to where the APM has been reconciled to the nearest statutory
equivalent.
KPIs are regularly reviewed against the Group's strategic objectives.
Reflecting the performance conditions and targets for the 2024 and 2025 long
term incentive plan, cash generation has replaced underlying organic capital
generation as a KPI. The Group's KPIs are discussed in more detail on the
following pages.
The Group's KPIs are shown below:
Six months ended Six months ended 31 December 2024 Change
30 June 2025 30 June 2024
Retirement Income sales(1) £2,156m £2,474m (13)%
New business profit(1) £162m £222m (27)%
Underlying operating profit(1) £192m £249m (23)%
IFRS profit before tax £65m £74m (12)%
Return on equity(1) 10.7% 15.6% -4.9pp
Tangible net asset value per share(1,3) 267p 254p +13p
New business strain(1) (as % of premium) 1.1% 1.5% -0.4pp
Cash generation(1) £63m £58m 9%
Solvency II capital coverage ratio(2,3) 198% 204%(4) (6)pp
(1 ) Alternative performance measure, see glossary for
definition.
(2 ) The 30 June 2025 and 31 December 2024 Solvency II
capital coverage ratio includes a recalculation of TMTP. The 30 June 2025
ratio is estimated.
(3 ) Balance sheet metrics include comparatives as at 31
December 2024.
(4 ) 2024 capital position is presented on a proforma basis
after the impact of the February 2025 repayment of Tier 3 subordinated debt.
Tangible net assets / Return on equity (UNDERLYING)
The return on equity in the six months to 30 June 2025 was 10.7% (H1 24:
15.6%), derived from annualised underlying operating profit after attributed
tax of £144m (H1 24: £187m) arising on average adjusted tangible net assets
of £2,702m (30 June 2024: £2,400m, 31 December 2024: £2,481m). Tangible net
assets are reconciled to IFRS total equity as follows:
30 June 2025 31 December 2024 30 June 2024
£m £m £m
IFRS total equity attributable to ordinary shareholders 944 924 908
Less intangible assets (39) (40) (41)
Tax on amortised intangible assets 1 1 2
Add back contractual service margin 2,479 2,328 2,152
Adjust for tax on contractual service margin (616) (578) (535)
Tangible net assets 2,769 2,635 2,486
Tangible net assets per share 267p 254p 240p
Return on equity % (underlying) 10.7% 15.3% 15.6%
Underlying operating profit
Underlying operating profit is a core performance metric on which we measure
the year to year performance of the business. It includes the value of profits
deferred for recognition in future periods. Underlying operating profit
captures the performance and running costs of the business including interest
on the capital structure, but excludes operating experience and assumption
changes, which by their nature are less predictable and can vary substantially
from period to period.
For the first six months of 2025, underlying operating profit reduced by 23%
to £192m (H1 24: £249m), primarily due to lower new business volumes and
margins as we faced increased competition and tighter credit spreads, in
addition to operating in the seasonally quieter half of the year for the DB
market. Recurring in-force operating profit rose by 11% to £126m due to a
larger balance sheet, which was partially offset by increases in other group
companies' costs, development costs and other, and finance costs.
We expect a much busier DB market in the second half of 2025, with £2.0bn DB
volumes written or exclusive year to date (H1 25: £1.6bn, 2024 as a whole:
£4.3bn shareholder funded DB de-risking sales) adding to broadly similar GIfL
volumes in the second half.
Six months ended Six months ended Change
30 June 2025 30 June 2024
£m £m %
New business profit 162 222 (27)
CSM amortisation (35) (33) 6
Net underlying CSM increase 127 189 (33)
In-force operating profit 126 114 11
Other Group companies' operating results(1) (9) (7) 29
Development costs and other(1) (16) (14) 14
Finance costs (36) (33) 9
Underlying operating profit(2) 192 249 (23)
(1 ) The classification of costs within Other group companies
operating results and Development costs and other has been aligned with the
presentation in Solvency II.
(2 ) See reconciliation to IFRS profit before tax further in this
Business Review.
UNDERLYING Earnings per share
Underlying EPS (based on underlying operating profit after attributed tax) has
decreased to 13.8 pence for the six months ended 30 June 2025 (H1 24: 18.0
pence).
Six months ended Six months ended
30 June 2024
30 June 2025
Underlying operating profit (£m) 192 249
Attributable tax (£m) (48) (62)
Underlying operating profit after attributable tax (£m) 144 187
Weighted average number of shares (million) 1,042 1,035
Underlying EPS(1) (pence) 13.8 18.0
(1) Alternative performance measure, see glossary for definition.
New business profit
During the first half of 2025, new business profit fell 27% to £162m (H1 24:
£222m) driven by a 13% reduction in shareholder funded Retirement Income
sales to £2.2bn (H1 24: £2.5bn) and lower margins. In seasonally quieter and
more competitive markets, we outperformed on a relative basis as we took
advantage of our market leadership in the defined benefit de-risking small
scheme segment. We continue to focus on business mix and risk selection, which
combined with pricing discipline contributed towards partially offsetting the
headwinds of tighter credit spreads and increased competition which both
affect pricing, and the lower volumes. As a result of these factors, new
business margin decreased to 7.5% (H1 24: 9.0%).
movement in CSM
The total movement in CSM represents the net underlying increase of profit
deferral in CSM during the period before any transfers to CSM in respect of
operating experience and assumption changes recognised in the current period.
The new business profit of £162m deferred in CSM is almost double the CSM
in-force release (£87m). This provides a healthy level of replacement profit,
and demonstrates the value of new business written during the period relative
to the CSM release from existing business. This strong growth dynamic
increases the CSM store of value, which predictably releases into the
recurring in-force profit in future years.
CSM amortisation is the release from the CSM reserve into profit as services
are provided, net of accretion (unwind of discount) on the CSM reserve balance
(see below). £35m of net CSM amortisation (H1 24: £33m) is an £87m release
of CSM into profit, offset by £52m of interest accreted to the CSM. The £87m
CSM release into profit (H1 24: £75m) represents an annualised 6.8% (H1 24:
6.7%) of the CSM balance immediately prior to release.
Accretion at locked in rates on the CSM balance was £52m (H1 24: £42m),
which represents an annualised 4.2% (H1 24: 3.8%) of the opening plus new
business CSM balance. The rate of accretion reflects the interest rates locked
in on IFRS 17 transition and prevailing rates for subsequent new business
written.
In-force operating profit
In-force operating profit represents investment returns earned on surplus
assets, the release of allowances for credit default, CSM amortisation,
release of risk adjustment allowance for non-financial risk and other items.
Taken together, these are the key elements of the operating profit from
insurance activities on an IFRS 17 basis.
Six months ended Six months ended Change
30 June 2025 30 June 2024
£m £m %
Investment return earned on surplus assets 74 64 16
Release of allowances for credit default 16 15 7
CSM amortisation 35 33 6
Release of risk adjustment for non-financial risk / Other 1 2 n/a
In-force operating profit 126 114 11
The in-force operating profit increased by 11% to £126m (H1 24: £114m),
driven by a significant increase in investment return, as a result of a
greater amount of surplus assets. The higher release of allowance for credit
default reflects the growth in the investment portfolio that backs the
insurance guarantees we provide to our customers. Increase in CSM amortisation
is due to growth in the CSM release offset by the higher accretion as noted
earlier.
other group companies' operating results
The operating result for Other Group companies was a loss of £9m in the six
months ended 30 June 2025 (H1 24: loss of £7m). These costs include the net
cost of corporate and proposition related initiatives in the HUB group of
businesses and the Group's holding companies.
Development costs and other
Development costs and other were £16m for the six months ended 30 June 2025
(H1 24: £14m). Development costs relate to investment in systems capability,
in addition to various business line and functional transformation. This
investment will enable Just to continue to grow efficiently allowing us to
increasingly benefit from operational gearing, while managing our risks and
delivering products and services to our customers and business partners
through the latest technology.
finance costs
Finance costs were broadly unchanged at £36m for the six months ended 30 June
2025 (H1 24: £33m), with the increase reflecting the higher coupon payable on
a portion of the Group's refinanced debt. These costs include the coupon on
the Group's Restricted Tier 1 notes, as well as the interest payable on the
Group's Tier 2 and Tier 3 notes.
The Group has a £400m revolving credit facility provided by eight banks. This
facility is available until June 2027, and has not been drawn upon since
inception in June 2022.
On a statutory IFRS basis, the Restricted Tier 1 coupon is accounted for as a
distribution of capital, consistent with the classification of the Restricted
Tier 1 notes as equity, but the coupon is included as a finance cost on an
underlying and adjusted operating profit basis.
Retirement income Sales
Six months ended Six months ended
30 June 2025
£m 30 June 2024 Change
£m %
Defined Benefit De-risking Solutions ("DB") 1,636 1,874 (13)
Guaranteed Income for Life Solutions ("GIfL") (1) 520 600 (13)
Retirement Income sales (shareholder funded) 2,156 2,474 (13)
DB Partner (funded reinsurance) - - -
Total Retirement Income sales 2,156 2,474 (13)
(1 ) GIfL includes UK GIfL, South Africa GIfL and Care Plans.
The structural drivers and trends in our markets underpin our confidence that
we can continue to deliver attractive returns and growth rates over the
long-term. We are extremely well positioned to take advantage of the growth
opportunities available in both of our chosen markets. Over the past three
years, rising long term interest rates have accelerated the closure of, and in
most cases eliminated, scheme funding gaps. Therefore, more schemes are able
to begin the process to be "transaction ready", with insurance remaining the
"gold standard" for trustees and their members amongst the various options
available. The retail GIfL market is also healthy, driven by the customer rate
available and advisers shopping around in the Open market. The level of
long-term interest rates directly influences the customer rate we can offer,
with the higher rates persisting thus far in 2025, which is further augmented
by individual medical underwriting. This increases the value of the guarantee
to customers, making the product more attractive relative to other forms of
retirement income. We will take advantage of this healthy market backdrop
through our low-strain new business model, which enables us to fund our
ambitious growth plans through cash generation. When combined with our proven
ability to originate high-quality illiquid assets, shareholder capital
invested in new business adds substantially to increasing the existing
shareholder value.
Shareholder funded DB sales at £1,636m (H1 24: £1,874m) were down 13%, with
headline sales reflecting the effect on Just from operating in the
traditionally seasonally quieter first half of the year, exacerbated in 2025
by some larger schemes pausing potential transactions in anticipation of the
government's new pension rules, which were announced in May. From an execution
perspective, we outperformed by completing 61 transactions (H1 24: 55
transactions), which represents over a third of all transactions in the market
(source: Just estimates). Prior investment in our proposition and early
positioning enabled Just to continue to take advantage of the very strong
market demand for <£100m small scheme transactions. Smaller schemes are
typically less hedged to interest rates and also benefit the most from unit
cost savings on buyout. Our proprietary bulk quotation and price monitoring
service, ("Beacon"), continues to grow in popularity with over 350 DB schemes
now onboarded. Beacon provides access to the DB de-risking market for
trustees, accelerates transaction flow for EBCs by providing a streamlined
process and provides a steady source of completions for Just. As part of our
proposition to EBCs (employee benefit consultants), trustees, and scheme
sponsors, we are always available to service and quote for schemes of all
sizes, as evidenced from our consistently high activity levels. This is driven
by our talented people, client focussed culture, systems infrastructure and
streamlined processes. In the first half, we maintained our leadership
position in the less than £100m transaction size segment, writing £0.8bn of
business (57 transactions) with a further £0.8bn from the £100m-£1bn medium
transaction size segment (4 transactions). Due to the improved scheme funding
position, there are now increased opportunities in the large deal transaction
size segment (£1bn plus), as per 2024's £1.8bn G4S transaction, where we
continue to actively quote and selectively participate. Since the reported H1
25 DB volumes, we have written or are exclusive on a further £0.4bn of DB
business, leading to a cumulative £2.0bn year to date. This compares to
£4.3bn of shareholder funded DB premiums for the whole of 2024.
GIfL sales were down 13% to £520m (H1 24: £600m). The 2025 performance is a
normalisation of volumes between both halves of the year following a skew in
2024, where we tactically focused on volume in the first half and margin
during the second half (2024 as a whole: £1,033m). We continue to utilise our
market leading medical underwriting to risk select more profitable and niche
segments of a larger individual GIfL market. Following very strong market
growth over the past two years, we expect the c.£7bn UK GIfL market to
consolidate at this higher level during 2025, thereafter followed by
structural growth driven by demographics as more people reach retirement age.
These retirees will increasingly have larger defined contribution ("DC")
pension pots due to workplace schemes and auto-enrolment, and less defined
benefit ("DB"). Due to the higher customer rates now on offer, advisers and
customers are positively inclined to use guaranteed income in their retirement
planning. The introduction of the FCA's Consumer Duty in July 2023 and the
findings from the FCA's thematic review into retirement income advice
published in March 2024 continue to lead advisers towards re-examining the
importance of considering guaranteed solutions to help customers achieve
their objectives. In reaction to this, we are investing in our distribution
to broaden and deepen our participation in the advisor channel to access this
market segment, which contains larger pots and generally healthier lives.
RECONCILIATION OF UNDERLYING OPERATING PROFIT TO IFRS PROFIT BEFORE TAX
Six months ended Six months ended
30 June 2025 30 June 2024
£m £m
Underlying operating profit(1) 192 249
Operating experience and assumption changes 4 (3)
Investment and economic movements 23 23
Strategic expenditure (10) (13)
Adjustment for transactions reported directly in equity in IFRS 8 11
Adjusted profit before tax(1) 217 267
Deferral of profit in CSM (152) (193)
Profit before tax 65 74
(1 ) Alternative performance measure, see glossary for
definition.
Investment and economic movements
Six months ended Six months ended
30 June 2025 30 June 2024
£m
£m
Change in risk free rates and inflation (2) 14
Effect of credit spreads (8) -
Property growth experience (27) 1
Corporate bond default experience variance 16 15
In-force investment return variance 10 23
Other 34 (30)
Investment and economic movements 23 23
Investment and economic movements for the six months ended 30 June 2025 were
positive at £23m (H1 24: £23m positive). Movements in risk free rates have
had a negligible effect(1) due to the strategic hedging strategy that was
first implemented in the latter part of 2022 and has continued since. This
includes the initial purchase and accumulation of £4.0bn portfolio (31
December 2024: £4.0bn) of long dated gilts held at amortised cost under IFRS.
This approach has almost eliminated the IFRS exposure(1) whilst also
containing our Solvency II sensitivity to future interest rate movements (see
estimated Group Solvency II sensitivities below).
Credit spread movement had an £(8)m effect (H1 24: nil). The LTM portfolio
property growth performed below the 3.3% annual long-term property growth
assumption (2024: 3.3% annual property growth assumption), resulting in a
negative variance. Continued positive corporate bond default experience led to
a release of allowances for credit default risk, while investment return on
surplus assets achieved continues to be above the assumption allowed for in
the in-force operating profit. Other includes the positive effect of asset
trading timing, economic assumption updates, and other investment variances.
(1) See note 11 for interest rate sensitivities, with a 100 bps
increase in interest rates resulting in a decrease in pretax profit of £(4)m
and a 100 bps decrease in interest rates resulting in an increase in pretax
profit of £21m.
STRategic expenditure
Strategic expenditure was £10m for the six months ended 30 June 2025 (H1 24:
£13m). This included investment to scale and bring to market various retail
related propositions and investment in our workplace property facilities. The
year on year reduction encompassed projects that completed in 2024, including
costs in relation to Solvency II reforms, Consumer Duty, and the Partnership
internal model.
Deferral of profit in CSM
As noted above, underlying operating profit is a core performance metric. This
includes new business profits deferred in CSM that will be released in future.
When reconciling the underlying operating profit with the statutory IFRS
profit, it is necessary to adjust for the value of the net deferral of profit
in CSM.
Net transfers to contractual service margin includes amounts that are
recognised in profit or loss including the accretion and the amortisation of
the contractual service margin. The table below is on a pre-tax basis:
Six months ended 30 June 2025 Six months ended 30 June 2024
Gross insurance contracts Reinsurance contracts Total Gross insurance contracts Reinsurance contracts Total
£m
£m
£m
£m
£m
£m
CSM balance at 1 January 2,731 (403) 2,328 2,449 (490) 1,959
New Business initial CSM recognised 163 - 163 236 (10) 226
Accretion of interest on CSM 59 (7) 52 54 (12) 42
Changes to future cash flows at locked-in economic assumptions(1) (37) 60 23 (69) 69 -
Release of CSM (100) 13 (87) (86) 11 (75)
Net transfers to CSM 85 66 151 135 58 193
CSM balance at 30 June 2,816 (337) 2,479 2,584 (432) 2,152
(1) Includes exchange differences on translating foreign operations
reported within Other comprehensive income of £1m.
Capital management
The Group's capital coverage ratio was estimated to be 198% at 30 June 2025(1)
(31 December 2024: 204%)(1). The Solvency II capital coverage ratio is a key
metric and is considered to be one of the Group's KPIs.
30 June 2025(1) 31 December 2024(2)
£m
£m
Own funds 2,962 3,055
Solvency Capital Requirement (1,496) (1,494)
Excess own funds 1,466 1,561
Solvency coverage ratio(1) 198% 204%
(1) Solvency II capital coverage ratios as at 30 June 2025 and 31
December 2024 includes a recalculation of TMTP. The 30 June 2025 coverage
ratio is estimated.
(2 ) 2024 capital position is presented on a proforma basis after
the impact of the February 2025 repayment of Tier 3 subordinated debt. The
capital ratio at 31 December 2024 was 211% prior to this repayment.
The Group has approval to apply the matching adjustment and TMTP in its
calculation of technical provisions and uses an internal model to calculate
its Group Solvency Capital Requirement ("SCR").
Movement in excess own funds(1)
The business is delivering sufficient cash generation, which augmented with
management actions, supports the deployment of capital to capture the
significant growth opportunity available in our chosen markets, provide
returns to our capital providers and further investment in the strategic
growth of the business.
The table below analyses the movement in excess own funds, in the six months
to 30 June 2025.
At 30 June At 30 June
2025 2024
£m £m
Excess own funds at 1 January 1,561 1,527
Operating
In-force surplus net of TMTP amortisation 98 85
Financing costs (29) (24)
Non-life costs (6) (3)
Cash generation 63 58
New business strain(2) (23) (37)
Development costs and other (12) (9)
Management actions 19 30
Organic capital generation(3) 47 42
Non-operating
Strategic expenditure (7) (10)
Dividends (19) (16)
Economic movements (116) (55)
Excess own funds 1,466 1,488
(1 ) All figures are net of tax and include a recalculation of
TMTP where applicable.
(2 ) New business strain calculated based on pricing assumptions.
(3 ) Organic capital generation includes surplus from in-force,
new business strain, overrun and other expenses, interest and other operating
items. It excludes economic variances, regulatory changes, dividends and
capital issuance.
cash generation and New business STRAIN
The Group is focused on sustainable growth, whereby the various costs of the
business including TMTP amortisation, finance, development and other costs,
and new business strain is funded through the capital generation from the
existing in-force book. This is further augmented by management actions.
In the first six months of 2025, we have delivered £63m of cash generation
(H1 24: £58m), driven by 15% growth in cash from in-force to £98m as the
balance sheet grows. The increase in financing costs reflected the timing of
interest payments following new debt issuance in September 2024, while
Non-life costs increased to £6m (H1 24: £3m). We invested £23m in new
business capital strain with the year-on-year reduction due to writing
business at 1.1% of premium (H1 24: 1.5% of premium) in addition to the lower
shareholder backed new business volumes. This level of new business strain is
well within our target of below 2.5% of premium, and is due to a continued
combination of focused risk selection, pricing discipline, and originating
sufficient quantities of high-quality illiquid assets. Volumes and the
associated strain are expected to rebound during the busier second half of the
year. Development costs and other of £12m (H1 24: £9m) combined with
positive management actions and other items of £19m (H1 24: £30m positive)
led to a total of £47m from organic capital generation (H1 24: £42m).
NON-OPERATING items
Changes in the capital surplus were as follows. Together, economic movements
summed to a £(116)m reduction. This is derived from the £(60)m effect of
movements in long term interest rates during the six-month period and resulted
in a 3 percentage point decrease in the capital coverage ratio. Property price
growth experience at (0.4)% for the first six months of 2025, compared to our
1.65% six month growth assumption (annual 3.3% long-term growth assumption)
led to a £(22)m decrease, or a 2 percentage point decrease in the capital
coverage ratio. Asset trading timing, and other residual economic variances
summed to a £(34)m decrease.
Payment of the 2024 final shareholder dividend in May cost £19m while
strategic expenses reduced the capital surplus by a further £7m.
There were no capital restrictions in the 30 June 2025 capital position.
Estimated group Solvency II sensitivities(2,3)
The Group assesses the sensitivity of the Solvency II balance sheet to
potential changes in economic parameters and mortality. The results of
sensitivities applied to the 30 June 2025 Solvency II balance sheet are
reported below
At 30 June 2025
CCR Excess own funds
% £m
Solvency coverage ratio/excess own funds at 30 June 2025(1,2,3,4) 198 1,466
Impact of sensitivity applied increase/(decrease)
-50bps fall in interest rates (4) 54
+50bps increase in interest rates 2 (63)
+100bps credit spreads 15 130
Credit quality step downgrade(5) (7) (97)
-10% property values(6) (8) (103)
-5% mortality (9) (134)
1 The sensitivities above are determined by applying stresses to
single risk factors. Stresses to multiple risk factors at the same time can
create more severe outcomes than on individual factors as reported above.
2 In all sensitivities the Effective Value Test ("EVT") deferment rate
is allowed to change subject to the minimum deferment rate floor of 4.0% as at
30 June 2025.
3 The results do not include the impact of capital tiering
restriction, if applicable.
4 Sensitivities are applied to the reported capital position which
includes a TMTP recalculation where applicable.
5 Credit migration stress covers the cost of an immediate big letter
downgrade (e.g. AAA to AA or A to BBB) on 10% of all assets where the capital
treatment depends on a credit rating (including corporate bonds, long income
real estate/income strips; but lifetime mortgage senior notes are excluded).
Downgraded assets are assumed to be traded to their original credit rating, so
the impact is primarily a reduction in Own Funds from the loss of value on
downgrade. The impact of the sensitivity will depend upon the market levels of
spreads at the balance sheet date. In addition, for residential ground rents,
the Group has identified that the impact of downgrading the entire portfolio
to BBB would reduce Excess own funds (the capital surplus) by £22m and CCR%
by two percentage points.
6 After application of NNEG hedges.
Reconciliation of IFRS equity to Solvency own funds
30 June 31 December 2024
£m
2025
£m
IFRS net equity 1,266 1,246
CSM 2,479 2,328
Goodwill (34) (34)
Intangibles (5) (6)
Solvency risk margin (195) (194)
Solvency TMTP(1) 383 409
Other valuation differences and impact on deferred tax (1,562) (1,316)
Ineligible items (4) (3)
Subordinated debt 653 643
Group adjustments (19) (18)
Solvency own funds(1) 2,962 3,055
Solvency SCR(1) (1,496) (1,494)
Solvency excess own funds(1,2) 1,466 1,561
(1 ) Solvency capital coverage ratios as at 30 June 2025 and 31
December 2024 include a recalculation of TMTP. The 30 June 2025 capital
coverage ratio is estimated.
(2 ) 2024 capital position is presented on a proforma basis after
the impact of the February 2025 repayment of Tier 3 subordinated debt.
Reconciliation from operating profit to ifrs consolidated statement of comprehensive income
The table below presents the reconciliation from the Group's APM income
statement view to the IFRS statement of comprehensive income for the Group.
Six months ending 30 June 2025
Alternative profit measure format Statutory accounts format
Reported(1) Quote date difference(2) CSM Adjusted Insurance service result Net investment result Other finance costs Other income, expenses and associates PBT
£m £m Deferral(3) Total(4) £m £m £m £m £m
£m £m
New business profit 162 1 (163) -
CSM amortisation (35) 35 -
Net underlying CSM increase 127 1 (128) -
In-force operating profit:
Investment return earned 74 74 74 74
on surplus assets
Release of allowances for credit default 16 16 16 16
CSM amortisation 35 35 87 (52) 35
Release of risk adjustment 1 1 (1) 2 1
for non-financial risk
Other Group companies' (9) (9) (9) (9)
operating results
Development costs and other (16) (16) (16) (16)
Finance costs (36) (36) (36) (36)
Underlying operating profit 192 1 (128) 65
Operating experience and 4 (24) (20) 5 (25) (20)
assumption changes
Investment and economic movements 23 (1) 22 123 (100) (1) 22
Strategic expenditure (10) (10) (10) (10)
Adjustment for transactions reported directly in equity in IFRS 8 8 8 8
Adjusted profit before tax 217 (152) 65
Deferral of profit in CSM (152) 152 -
Profit before tax 65 65 91 138 (128) (36) 65
1 The rows and first numeric column of this table present the Reported
alternative profit measure (APM) format as presented in the Underlying
operating profit section and Reconciliation of Underlying operating profit to
IFRS profit before tax section of this review.
2 The Quote date difference adjustment is made because Just bases its
assessment of new business profitability for management purposes on the
economic parameters prevailing at the quote date for GIfL business and market
condition date for DB business instead of the IFRS 17 recognition date (see
new business profit reconciliation in the additional information section
towards the end of this announcement).
3 The CSM column presents how elements of the APM basis result are
deferred in the CSM reserve held on the IFRS balance sheet consistent with the
table in the Deferral of profit in CSM section of this review. Under IFRS 17,
new business profits and the impact of changes to estimates of future cash
flows are deferred in the CSM reserve for release over the life of contracts.
The movement in CSM within Note 11 is net of £1m reported within Other
comprehensive income.
4 The Adjusted total column is then transposed in the columns on the
right-hand side into the IFRS statutory accounts Condensed consolidated
statement of comprehensive income format. Figures are presented on a net of
reinsurance basis.
The IFRS profit before tax of £65m (H1 24: £74m) is reported after deferral
of £162m new business profit in CSM (H1 24: £222m) and any
experience/assumption changes (H1 25: £(24)m, H1 24: £nil) in the balance
sheet. The CSM amortisation recognised in the IFRS result of £35m (H1 24:
£33m) reflects the recognition of services provided in the year net of
accretion. This is expected to increase as our stock of CSM grows with new
business. The pre-tax CSM closing balance stands at £2,479m (H1 24:
£2,152m), as per note 11.
Investment and economic movements recognised within IFRS finance costs of
£(100)m (H1 24: £70m) includes interest on repurchase agreements of £(87)m
(H1 24: £(67)m) that fund the Group's increased amortised cost portfolio of
sovereign gilts that now stands at £4.0bn. Interest earned on the amortised
cost gilts of £84m (H 24: £57m) is reported within net investment result.
Net interest received on collateral of £4m is reported gross within net
investment result for interest income of £17m and in finance costs for
interest paid of £(13)m. The remaining impact on Net investment result, and
IFRS PBT, from investment and economic movements of £22m (H1 24: £37m)
relates to changes in exchange rates, long-term interest rates, and where the
impact on the investment portfolio backing insurance contracts does not
perfectly match the impact on reserves.
Highlights from condensed consolidated statement of financial position
The table below presents selected items from the Condensed consolidated
statement of financial position. The information below is extracted from the
statutory consolidated statement of financial position.
30 June 2025 31 December 2024
£m £m
Assets
Financial investments 35,323 34,390
Reinsurance contract assets 2,051 2,067
Cash available on demand 686 808
Other assets 633 657
Total assets 38,693 37,922
Share capital and share premium 199 199
Other reserves 944 944
Retained earnings (199) (219)
Total equity attributable to ordinary shareholders of Just Group plc 944 924
Tier 1 notes 322 322
Total equity 1,266 1,246
Liabilities
Insurance contract liabilities 28,933 27,753
Reinsurance contract liabilities 118 94
Payables and other financial liabilities 7,625 7,889
Other liabilities 751 940
Total liabilities 37,427 36,676
Total equity and liabilities 38,693 37,922
The amounts reported in the Condensed Consolidated Statement of Financial
Position above for Insurance and Reinsurance contracts include our best
estimate, risk adjustment and contractual service margin "CSM". The analysis
of these as reported in note 11 is included below.
30 June 2025 31 December 2024
Gross Net Reinsurance Net Gross Net Reinsurance Net
£m
£m
£m
£m
£m
£m
Best estimate 25,012 (823) 24,189 23,970 (838) 23,132
Risk adjustment 1,105 (773) 332 1,052 (732) 320
CSM 2,816 (337) 2,479 2,731 (403) 2,328
Net closing balance 28,933 (1,933) 27,000 27,753 (1,973) 25,780
After tax, the closing CSM is £1,863m (31 December 2024: £1,750m)
IFRS net assets
The Group's total equity at 30 June 2025 was £1.3bn (31 December 2024:
£1.2bn). Total equity includes the Restricted Tier 1 notes of £322m (after
issue costs) issued by the Group. The total equity attributable to ordinary
shareholders increased to £944m (31 December 2024: £924m).
The closing CSM balance (post tax) at 30 June 2025 is £1,863m (31 December
2024: £1,750m), which when added to £944m of total equity attributable to
ordinary shareholders (31 December 2024: £924m) less £38m (post tax)
intangible assets (31 December 2024: £39m), results in Tangible Net Assets of
£2,769m or 267p per share (31 December 2024: £2,635m and 254p respectively),
on which we earned an annualised 10.7% Return on equity (2024: 15.3%).
Financial investments
During the period, financial investments increased by £0.9bn to £35.3bn (31
December 2024: £34.4bn). Excluding derivatives and collateral, and gilts
purchased in relation to the interest rate hedging, the core investments
portfolio on which we take credit risk increased to £27.9bn during the first
half of 2025. The increase in the portfolio has been driven by investment of
the Group's £2.2bn of new business premiums and credit spread tightening,
offset by the increase in long-term risk-free rates at the end of the period
compared to 2024 year-end, which decreases the market value of the assets (and
matched liabilities). The credit quality of the Group's £19bn bond portfolio
remains resilient, with 62% rated A or above (31 December 2024: 62%), with
only £100m across 10 credits rated BB or below. Our diversified portfolio
continues to grow and is well balanced across a range of industry sectors and
geographies.
We have positioned the portfolio with a defensive bias. The Group has very
limited exposure to those sectors that are most sensitive to structural change
or macroeconomic conditions, such as auto manufacturers, consumer (cyclical),
energy and basic materials. The Group has further increased
its infrastructure investments, driven by new private placement assets. We
selectively increased the commercial mortgages investments by rotating from
real estate (incl. REITs) bonds. We continue to retain excess government bonds
and liquidity due to the continued tight corporate credit spread environment,
with excess cash and gilts expected to be recycled into corporate credit and
illiquid assets as opportunities arise. The BBB rated bonds
are weighted towards the most defensive sectors including infrastructure,
utilities, communications and technology, and consumer staples including
healthcare.
We prudently manage the balance sheet by hedging all foreign exchange and
inflation exposure, and continue to execute strategic interest rate hedging.
This involves the purchase and accumulation of a £4.0bn held to maturity long
dated gilts portfolio, which are held at amortised cost under IFRS. In the
Solvency II balance sheet, this portfolio is held at fair value and used to
manage interest rate volatility.
Illiquid assets
To support new business pricing, optimise back book returns, and to further
diversify its investments, the Group originates illiquid assets including
infrastructure, real estate investments, private placements and lifetime
mortgages. Income producing real estate investments are typically much longer
duration and hence the cash flow profile is very beneficial, especially to
match DB deferred liabilities.
In the first six months of the year, we funded £1.0bn of illiquid assets,
which represents a 48% new business backing ratio. Over the past three years,
we have progressively increased our investments capability, and are now
directly originating from particular illiquid asset classes (e.g. social
housing, private placements, infrastructure and commercial ground rents), in
addition to lifetime mortgages. In parallel, we also originate illiquid assets
via a panel of 12 specialist external asset managers, each carefully selected
based on their particular area of expertise. Our illiquid asset origination
strategy allows us to efficiently scale origination of new investments, and to
flex allocations between sectors depending on market conditions and risk
adjusted returns.
To date, Just has invested £7.2bn in non-LTM illiquid assets, representing
26% of the investments portfolio
(31 December 2024: 24%), spread across more than 350 investments (average
£20m), both UK and abroad. We have invested in our in-house credit team as we
have broadened the illiquid asset origination, and work very closely with our
specialist asset managers on structuring to enhance our security, with a right
to veto on each asset.
Lifetime mortgages at £5.9bn represent 21% of the investments portfolio,
which we expect to gradually reduce over time as we originate fewer new LTMs
and diversify the portfolio with other illiquid assets. The loan-to-value
ratio of the in-force lifetime mortgage portfolio was 39.6% (31 December 2024:
39.0%), reflecting the gradual seasoning of the mortgages across our
geographically diversified portfolio. In the first half of 2025, shareholder
funded LTM advances were £262m (H1 24: £107m).
The sector analysis of the Group's financial investments portfolio is shown
below and continues to be well diversified across a variety of industry
sectors.
30 June 2025 30 June 2025 31 December 2024 31 December 2024
£m % £m %
Basic materials 97 0.3 109 0.4
Communications and technology 984 3.5 1,154 4.3
Auto manufacturers 60 0.2 85 0.3
Consumer staples (including healthcare) 1,330 4.8 1,226 4.5
Consumer cyclical 154 0.6 178 0.7
Energy 234 0.8 278 1.0
Banks 1,375 4.9 1,469 5.4
Insurance 849 3.0 745 2.8
Financial - other 700 2.5 590 2.2
Real estate including REITs 564 2.0 630 2.3
Government 3,262 11.7 3,081 11.4
Industrial 562 2.0 524 1.9
Utilities 2,260 8.1 2,452 9.1
Commercial mortgages(1) 1,005 3.6 809 3.0
Long income real estate(2) 1,794 6.4 1,808 6.7
Infrastructure 3,951 14.2 3,512 13.0
Other 42 0.2 43 0.2
Bond total 19,223 68.9 18,693 69
Other assets 869 3.1 888 3.3
Lifetime mortgages 5,912 21.2 5,637 20.9
Liquidity funds 1,888 6.8 1,792 6.6
Investments portfolio 27,892 100.0 27,010 100
Derivatives and collateral 3,594 3,564
Gilts (interest rate hedging) 3,972 3,951
Total 35,458 34,525
1 Includes investment in trusts which are included in investment
properties in the IFRS Consolidated statement of financial position.
2 Includes direct long income real estate and where applicable,
investment in trusts of £135m which are primarily included in investments
accounted for using the equity method in the IFRS Consolidated statement of
financial position. Long income real estate includes £1,638m commercial
ground rents/income strips and £156m residential ground rents.
Events after the reporting period
On 31 July 2025 the Board announced it had reached agreement with the Board of
Brookfield Wealth Solutions Ltd on the terms of a recommended cash offer to be
made by BWS Holdings Ltd, a wholly owned subsidiary of Brookfield Wealth
Solutions Ltd, to acquire the entire share capital of Just Group plc at a
price of 220 pence per share. BWS Holdings Ltd reserves the right to reduce
the offer price per share by the amount of any dividend paid by Just Group plc
after 31 July 2025, including the interim dividend for 2025 announced today of
0.84 pence per ordinary share. The acquisition, which is subject to the
satisfaction of certain regulatory and competition conditions and shareholder
and regulator approval, is expected to complete during the first half of 2026.
The intention is to combine Just Group plc with Blumont Annuity Company UK, a
wholly owned subsidiary of BWS Holdings Ltd, to operate as a single
consolidated UK insurance group operating under the Just brand by the senior
management of Just Group plc.
The announcement has no impact on the financial statements for the period
ended 30 June 2025.
In line with our stated policy to grow the dividend over time, the Board has
declared an interim dividend of 0.84 pence per share, or £9m (H1 24 interim
dividend 0.7 pence per share, £7m), representing one-third of the equivalent
prior year full year dividend of 2.5 pence per share.
MARK GODSON
Group Chief Financial Officer
Risk management
The Group's enterprise-wide risk management strategy is to enable all
colleagues to make more effective business decisions through a better
understanding of risk.
Purpose
The Group risk management framework supports management to make decisions that
balance the competing risks and rewards. This allows them to generate value
for shareholders, deliver appropriate outcomes for customers and help our
business partners and other stakeholders have confidence in us. Our approach
to risk management is designed to ensure that our understanding of risk
underpins how we run the business.
Risk framework
Our risk framework, owned by the Group Board, covers all aspects involved in
the successful management of risk, including governance, reporting and
policies. Our appetite for different types of risk is embedded across the
business to create a culture of confident and informed risk-taking. The
framework is continually developed to reflect our risk environment and
emerging best practice.
Risk EVALUATION AND REPORTING
We evaluate our principal and emerging risks to decide how best to manage them
within our risk appetite. The Risk function, led by the Group Chief Risk
Officer ("GCRO"), challenges the management team on the effectiveness of its
risk identification, measurement, management, monitoring, and reporting. Our
approach is set out in further detail on page 65 of the 2024 Annual Report and
Accounts.
own risk and solvency assessment
The Group's Own Risk and Solvency Assessment ("ORSA") process embeds
comprehensive risk reviews into our Group management activities. Our approach
is set out in further detail on page 65 of the 2024 Annual Report and
Accounts.
principal risks and uncertainties
The principal risks faced by the Group at 30 June 2025 continue to be: Market;
Credit; Insurance; Liquidity; Conduct and Operational; and Strategic risks.
Further detail regarding the management of these risks can be found on page 66
of the 2024 Annual Report and Accounts.
Risk outlook
How this risk affects Just Just's exposure to the risk Outlook and how we manage or mitigate the risk
Political and regulatory Just monitors and assesses regulatory developments for their potential impact We are participating in the PRA's Life Insurance Stress Test exercise in 2025.
on an ongoing basis. We seek to actively participate in all regulatory Results are expected to be published in the second half of 2025. We expect the
initiatives which may affect or provide future opportunities for the Group. LIST results to inform regulatory policy and supervisory activity going
Our aims are to implement any changes required effectively and deliver better forward. The Group holds a capital buffer above that required by regulation to
Changes in regulation and/or the political environment can impact the Group's outcomes for our customers and a competitive advantage for the business. We withstand a 99.5% 1-year VaR shock. The target level of buffer is maintained
financial position and its ability to conduct business. The financial services develop our strategy by considering planned political and regulatory in line with industry peers.
industry continues to see a high level of regulatory activity. developments and allowing for contingencies should outcomes differ from our
expectations. The Group is closely monitoring the Government's leasehold reform agenda and
the possible impact of this on the Group's £156m portfolio of residential
The government's commitment to UK competitiveness, as signalled by HM ground rents. The value of these assets has been adjusted to reflect an
Trend Treasury's focus on financial services growth, may shape future regulations. expected increase in credit spread and consequential increase in the credit
Based on existing regulatory plans, we anticipate limited major changes in the risk deduction for defaults.
Uncertain near term.
We have previously engaged with the FCA on its plans to introduce 'targeted
support'. On 30th June 2025 the FCA published its proposals on the
introduction of targeted support for consumers decisions about pensions and
investments. The Group will engage with the FCA further on its proposals.
We are currently reviewing the FCA's June 2025 Discussion Paper DP25/2 on its
review of the regulated mortgage market which includes consideration of
changes needed to support later life lending and are considering our response.
Climate and sustainability Our TCFD disclosures (pages 40 to 53 of the Just Group plc Annual Report and We proactively pursue our sustainability responsibilities, recognising our
Accounts 2024) explain how climate-related risks and opportunities are social purpose in delivering retirement and later life solutions.
embedded in Just's governance, strategy and risk management, with metrics to
show the potential financial impacts on the Group. The metrics reflect the We aim to achieve carbon net zero for Scope 1 and 2 emissions by the end of
Climate change could impact our financial position by impacting the value of stress-testing and scenario capabilities developed to date to assess the 2025, and for Scope 3 emissions by 2050, with a 50% overall reduction by 2030.
residential properties in our lifetime mortgage portfolio and the yields and potential impact of climate risk on the Group's financial position. Progress towards these targets is regularly monitored and reported.
default risk of our investment portfolios. Just's reputation could also be
affected by missed emissions targets or inadequate actions on environmental The value of properties on which lifetime mortgages are secured can be The ABI is maintaining engagement with stakeholders, including Just, to
issues or broader sustainability issues. affected by: prepare for reporting under the UK Sustainability Reporting Standards and
mandatory transition plan publications. Our existing reporting, aligned with
(i) transition risk - such as potential government policy changes related to TCFD recommendations and supported by transition plan disclosures in 2021 and
the energy efficiency of residential properties; 2024, positions us to adapt confidently to evolving sustainability reporting
Trend
requirements.
(ii) physical risks - such as increased flooding due to severe rainfall, or
Uncertain more widespread subsidence after extended droughts. The PRA's ongoing consultation on climate risk management (CP10/25) is set to
introduce enhanced expectations for managing climate related risks. In
A shortfall in property sale price against the outstanding mortgage could lead parallel, the UK government is progressing toward adoption of the ISSB's IFRS
to a loss due to the no-negative equity guarantee given to customers. S1 and S2 standards through the UK Sustainability Reporting Standards (UK
SRS), which will shape future climate-related disclosures. We are engaging
The value of corporate bonds and illiquid investments can be affected by with both developments to ensure we are ready to meet new requirements.
physical and transition risks from climate change on the assets or business of
corporate bond issuers and commercial borrowers. Yields available from Our Responsible Investment Framework actively addresses sustainability risks,
corporate bonds may also be affected by any litigation or reputational risks including climate change. This includes consideration of flooding, coastal
associated with the issuers' environmental policies or adherence to emissions erosion and subsidence risks within our lifetime mortgage lending decisions.
targets.
Cyber and technology Our IT systems are critical to delivering customer service and financial The increasing sophistication and volume of cyber threats, particularly those
management across our retirement and later life solutions markets, but driven by artificial intelligence, is expected to intensify in the coming
unexpected failures could cause losses and disruptions to operations. years. We are well positioned to mitigate these risks by closely monitoring
evolving external threats. Our continued investment in cyberattack
IT systems may not operate as expected or may be subject to cyber-attack to Cyber attacks, such as ransomware phishing, could compromise our IT systems, countermeasures strengthens our resilience.
steal or misuse our data or for financial gain. Any system failure affecting undermining operational continuity and customer trust.
the Group could lead to costs and disruption, adversely affecting its business
We have established a robust framework of operational resilience and disaster
and ability to serve its Customers, and reputational damage. The potential for loss or breach of personal information poses a significant recovery capabilities to ensure business continuity under adverse
cyber risk, potentially harming customers and other individuals, damaging our circumstances.
reputation, and incurring significant GDPR fines.
A specialist security operations centre monitors all our externally facing
Trend infrastructure and services, with threat analysis, incident management and
response capabilities. The Group's cyber defences are subject to regular
Stable external penetration tests to drive enhancements to our technology
infrastructure.
We conduct severe but plausible cyber desktop scenario exercises to find gaps
in our controls. We continue to enhance network architecture to strengthen
data security and overall resilience.
The development of in-house systems and our use of third-party systems,
including cloud and via third-party administrators' arrangements, is
continuously monitored by technical teams following established standards and
practices.
Internal controls are also integral to protecting the integrity of our
systems. Our multi-layered approach to information security is supported by
training, embedded company policies and governance.
Insurance risk A high proportion of longevity risk we underwrite is reinsured, except for our Experience and insights emerging since mid-2021 indicate that COVID-19, and
Care business, where longevity risk is minimal and fully retained, with the aftermath of the pandemic, has had a material and enduring impact on
In the long-term, the rates of mortality suffered by our customers may differ un-reinsured exposures primarily tied to pre-2016 business. mortality for existing and future policyholders.
from the assumptions made when we priced the contract.
Reinsurance treaties include collateral to minimise exposure in the event of a We regularly update our longevity assumptions to reflect recent data, best
reinsurer default. Analysis of collateral arrangements can be found in Note 29 practices, and anticipated trends, ensuring our pricing for retirement income
of the Just Group plc Annual Report and Accounts 2024. and lifetime mortgage products remains aligned with these evolving risks. We
Trend continually evaluate our reinsurance strategy based on pricing and experience.
This has led to an increase in retained longevity risk for certain new retail
Increasing policies.
Market and credit risk Our business model and risk management framework have been designed to manage The global economic landscape continues to be influenced by a combination of
exposure to market risks within predefined limits and to ensure hedge geopolitical tensions and economic policy uncertainties. The pace of interest
Fluctuations in interest rates, residential property values, credit spreads, effectiveness remains high. rate reduction remains uncertain.
inflation and currency may result, directly or indirectly, in changes in the
level and volatility of market prices of assets and liabilities. Investment in fixed income investments exposes the Group to default risk and Our portfolio is defensively positioned and focussed on high-quality
subsequent losses should collateral and recovery be less than the expected investment-grade issuers, minimising default risk.
investment value. The Group is exposed to concentration risk and to the
downgrade of assets. Our established risk management framework limits exposure to credit and market
Investment credit risk is a result of investing to generate returns to meet
risks through diversified investments, hedging, and asset-liability matching
our obligations to policyholders. Credit risk exposures arise from potential counterparty defaults in strategies. Balance sheet sensitivities are detailed in Notes 9(f) and 11(d).
reinsurance agreements, cash holdings, or derivatives trades used to mitigate
market risks. To manage these risks, we diversify counterparties, use We mitigate exposure to negative equity guarantee risk from potential
collateralised reinsurance and derivative contracts to limit exposures, and shortfalls in lifetime mortgage repayments through rigorous underwriting
Trend align with PRA's SS5/24. measures and reduced concentration risks. Sensitivity to a residential
property shock can be found in Notes 9(f) and 11(d).
Increasing Reinsurance contracts include protections against termination. Derivative
transactions use standardised agreements with collateral arrangements to Credit risk on cash assets is controlled by setting strict credit rating
mitigate counterparty credit risk. requirements for third party depositories, ensuring robust management of
counterparty exposures.
Liquidity risk Exposure to liquidity risk arises from: We conduct rigorous liquidity stress testing and maintain a high level of
liquidity coverage above stressed requirements.
Having sufficient liquidity to meet our financial obligations as they fall due • short term cash flow volatility leading to mismatches between cash flows
requires ongoing management and the availability of appropriate liquidity from assets and liabilities; Medium- and long-term liquidity risk projections are used to support planning
cover. The liquidity position is stressed to reflect the most extreme market
for future liquidity requirements.
conditions. • collateral requirements of financial derivatives and reinsurance
agreements; Corporate bond collateral agreements enable the Group to use bonds as
collateral to mitigate liquidity risks.
• the liquidation of assets to meet liabilities during stressed market
Trend conditions;
Increasing • higher-than-expected funding requirements and/or lower redemptions than
expected on LTM contracts; and
• liquidity transferability risk across the Group.
Strategic risk Changes in the nature or intensity of competition may impact the Group and Intensified competition within the DB & GIfL market may increase pressure
increase the risk that the business model is not able to be maintained. on margins. We continually evolve our propositions to maintain our competitive
edge and drive sustainable growth through delivery of our strategic
Increased digital innovation in the pensions and annuities markets may expose priorities.
The choices we make about the markets in which we compete and the demand for the Group to risks, including failure to meet evolving customer expectations.
our product and service offering may be affected by external risks including
We expect the accelerated pace of digital innovation to continue. Through
changes to regulation, competition, or social changes. Risks to the Group's strategy arise from regulatory change as the Group targeted investments in operating systems and customer-focussed digital
operates in regulated markets and has partners and distributors who are solutions, we aim to manage risks and capture opportunities, maintaining our
themselves regulated. Actions by regulators may change the shape and scale of strong competitive position.
the market or alter the attractiveness of markets.
Trend
A range of governmental initiatives from the review of the pensions landscape
may change the operation of existing DB pension schemes and workplace
Increasing pensions.
While the government's push for UK competitiveness may shape future
regulations, we anticipate limited major regulatory changes in the near term.
The FCA's Advice Guidance Boundary Review, currently under consultation with
draft rules and guidance, may introduce changes to the financial advice
landscape, potentially impacting our customer engagement and product delivery
strategies.
The risks to the Group from selection of strategies to compete are mitigated
through a strategic review process examining the competitive environment, the
Group's capabilities, and ability to deploy resources to take advantage of
opportunities.
Statement of Directors' responsibilities
The Directors of the Company confirm that to the best of their knowledge, this
condensed consolidated financial information has been prepared in accordance
with UK-adopted International Accounting Standard 34 "Interim Financial
Reporting", and that the interim management report includes a fair review of
the information required by the Disclosure Guidance and Transparency Rules
("DTRs") sourcebook of the United Kingdom's Financial Conduct Authority,
paragraphs DTR 4.2.4R, DTR4.2.7R and DTR 4.2.8R, namely;
· the condensed set of financial statements gives a true and fair
view of the assets, liabilities, financial position and profit or loss of the
Company, or undertakings included in the consolidation;
· an indication of important events that have occurred during the
first six months and their impact on the condensed set of consolidated
financial statements, and a description of the principal risks and
uncertainties faced by the Company and the undertakings included in the
condensed consolidated set of financial information taken as a whole for the
remaining six months of the financial year; and
· material related party transactions and any material changes in
the related party transactions described in the last annual report.
Matthew Saker (known as Matt Saker) was appointed as an independent
Non-Executive Director of the Company and its UK life assurance subsidiaries,
Just Retirement Limited ("JRL") and Partnership Life Assurance Company Limited
("PLACL") on 1 August 2025. Matt is Chair of the Company's Group Risk and
Compliance Committee and a member of the Group Audit Committee. He is also a
member of the Audit Committees and Investment Committees of JRL and PLACL.
There have been no other changes to the Directors of Just Group plc to those
listed in the Just Group plc Annual Report for the year ended 31 December
2024. A list of the current Directors is maintained on the Company's website:
www.justgroupplc.co.uk (https://www.justgroupplc.co.uk) .
By order of the Board:
David Richardson
Group Chief Executive Officer
06 August 2025
Independent review report to Just Group Plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Just Group Plc's condensed consolidated interim financial
statements (the "interim financial statements") in the Interim Results of Just
Group Plc for the 6 month period ended 30 June 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the condensed consolidated statement of financial position as at
30 June 2025;
· the condensed consolidated statement of comprehensive income for the
period then ended;
· the condensed consolidated statement of cash flows for the period
then ended;
· the condensed consolidated statement of changes in equity for the
period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim Results of Just Group
Plc have been prepared in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Interim Results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Interim Results, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Interim Results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Interim Results, including the
interim financial statements, the directors are responsible for assessing the
group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Interim Results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
6 August 2025
Condensed consolidated statement of comprehensive income
for the period ended 30 June 2025
Note Six months ended Six months ended Year ended
30 June 2025
31 December 2024
£m 30 June 2024 £m
£m
Insurance revenue 1,009 859 1,809
Insurance service expenses (903) (759) (1,621)
Net expenses from reinsurance contracts (15) (29) (39)
Insurance service result 3 91 71 149
Interest income on financial assets measured at amortised cost 87 59 135
Other investment return 654 (239) (263)
Investment return 4 741 (180) (128)
Net finance (expenses)/income from insurance contracts (606) 348 480
Net finance income/(expenses) from reinsurance contracts 5 (34) (52)
Movement in investment contract liabilities (2) - (2)
Net investment result 4 138 134 298
Other income 8 8 18
Other operating expenses (46) (40) (85)
Other finance costs (128) (92) (241)
Share of results of associates accounted for using the equity method 2 (7) (26)
Profit before tax 65 74 113
Income tax expense 5 (14) (20) (33)
Profit for the period 51 54 80
Other comprehensive income for the period, net of income tax - (4) (6)
Total comprehensive income for the period 51 50 74
Basic earnings per share (pence) 7 4.3 4.6 6.5
Diluted earnings per share (pence) 7 4.3 4.6 6.5
All profit and comprehensive income is attributable to equity holders of Just
Group plc in all periods presented.
The notes are an integral part of these financial statements.
Condensed consolidated statement of changes in equity
for the period ended 30 June 2025
Six months ended Share Share Other Retained Tier 1 Total equity Non- Total
capital(1)
premium
reserves
earnings(2)
30 June 2025
£m
£m
£m
£m notes excluding controlling interest £m
£m NCI £m
Note £m
At 1 January 2025 104 95 944 (219) 322 1,246 - 1,246
Profit for the period - - - 51 - 51 - 51
Other comprehensive income for the period (net of tax) - - - - - - - -
Total comprehensive income for the period - - - 51 - 51 - 51
Contributions and distributions
Dividends 6 - - - (19) - (19) - (19)
Interest paid on Tier 1 notes (net of tax) 6, 10 - - - (6) - (6) - (6)
Share-based payments reserve credit (net of tax) - - - 1 - 1 - 1
Transactions in shares held by trusts - - - (7) - (7) - (7)
Total contributions and distributions - - - (31) - (31) - (31)
At 30 June 2025 104 95 944 (199) 322 1,266 - 1,266
Six months ended Share Share Other Retained Tier 1 Total equity Non- Total
capital(1)
premium
reserves
earnings(2)
30 June 2024
£m
£m
£m
£m notes Excluding controlling interest £m
£m NCI £m
Note £m
At 1 January 2024 104 95 943 (259) 322 1,205 (2) 1,203
Profit for the period - - - 54 - 54 - 54
Other comprehensive income for the period (net of tax) - - - (4) - (4) - (4)
Total comprehensive income for the period - - - 50 - 50 - 50
Contributions and distributions
Dividends 6 - - - (16) - (16) - (16)
Interest paid on Tier 1 notes (net of tax) 6, 10 - - - (6) - (6) - (6)
Share-based payments reserve credit (net of tax) - - - (3) - (3) - (3)
Transactions in shares held by trusts - - 3 - - 3 - 3
Total contributions and distributions - - 3 (25) - (22) - (22)
Acquisition of non-controlling interest - - - (3) - (3) 2 (1)
Total changes in ownership interests - - - (3) - (3) 2 (1)
At 30 June 2024 104 95 946 (237) 322 1,230 - 1,230
Year ended Share Share Other Retained Tier 1 Total equity Non- Total
capital(1)
premium
reserves
earnings(2)
31 December 2024
£m
£m
£m
£m notes Excluding controlling interest £m
£m NCI £m
Note £m
At 1 January 2024 104 95 943 (259) 322 1,205 (2) 1,203
Profit for the period 80 80 - 80
Other comprehensive income for the period (net of tax) (2) (4) (6) (6)
Total comprehensive income for the period - - (2) 76 - 74 - 74
Contributions and distributions
Dividends 6 (23) (23) (23)
Interest paid on Tier 1 notes (net of tax) 6, 10 (12) (12) (12)
Share-based payments reserve credit (net of tax) 9 9 9
Transactions in shares held by trusts 3 (7) (4) (4)
Total contributions and distributions - - 3 (33) - (30) - (30)
Acquisition of non-controlling interest (3) (3) 2 (1)
Total changes in ownership interests - - - (3) - (3) 2 (1)
At 31 December 2024 104 95 944 (219) 322 1,246 - 1,246
( )
(1 ) There are no movements in the Parent Company's Share Capital
in any of the periods present. The number of £0.10 ordinary shares in issue
is unchanged at 1,038,702,932.
(2 ) Includes currency translation reserve of £6m (31 December
2024: £5m, 30 June 2024: £5m).
The notes are an integral part of these financial statements.
Condensed consolidated statement of financial position
as at 30 June 2025
Note 30 June 2025 31 December 2024 30 June 2024
£m
£m £m
Assets
Intangible assets 39 40 41
Property and equipment 22 20 24
Investment property 25 27 27
Investments accounted for using the equity method 118 119 139
Financial investments 8 35,323 34,390 31,029
Reinsurance contract assets 11 2,051 2,067 1,108
Deferred tax assets 373 387 392
Current tax assets 1 1 1
Prepayments and accrued income 17 14 16
Other receivables 38 49 40
Cash available on demand 686 808 570
Total assets 38,693 37,922 33,387
Equity
Share capital 104 104 104
Share premium 95 95 95
Other reserves 944 944 946
Retained earnings (199) (219) (237)
Total equity attributable to shareholders of Just Group plc 944 924 908
Tier 1 notes 10 322 322 322
Total equity attributable to owners of Just Group plc 1,266 1,246 1,230
Liabilities
Insurance contract liabilities 11 28,933 27,753 24,794
Reinsurance contract liabilities 11 118 94 79
Investment contract liabilities 43 42 38
Loans and borrowings 12 681 839 687
Payables and other financial liabilities 13 7,625 7,889 6,520
Accruals and provisions 27 59 39
Total liabilities 37,427 36,676 32,157
Total equity and liabilities 38,693 37,922 33,387
The notes are an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 6 August
2025 and were signed on its behalf by:
MARK GODSON
Director
Condensed consolidated statement of cash flows
for the period ended 30 June 2025
Note Six months ended Six months ended Year ended 31 December 2024
30 June 2025 30 June 2024 £m
£m
£m
Cash flows from operating activities
Profit before tax 65 74 113
Adjustments for:
Depreciation / amortisation 2 3 4
Share of results from associates (2) 7 26
Share-based payments (4) - 1
Interest income (700) (577) (1,217)
Interest expense 128 92 241
Change in operating assets and liabilities:
Net increase in financial investments (805) (1,236) (4,247)
Decrease/(increase) in net reinsurance contracts balance 40 (11) (955)
Increase in prepayments and accrued income (3) (4) (2)
Decrease in other receivables 11 19 10
Increase in insurance contract liabilities 1,180 663 3,622
Increase in investment contract liabilities 1 3 7
(Decrease)/increase in accruals and provisions (32) (11) 9
(Decrease)/increase in net derivatives liabilities, financial liabilities and (364) 845 2,101
other payables
Interest received 674 541 1,151
Taxation paid - - (1)
Net cash inflow from operating activities 191 408 863
Cash flows from investing activities
Acquisition of property and equipment (3) (5) (4)
Dividends from associates 3 3 4
Net cash outflow from investing activities - (2) -
Cash flows from financing activities
Proceeds on issue of borrowings (net of costs) - - 398
Payment on redemption of borrowings (155) - (256)
Acquisition of non-controlling interests - (1) (1)
Dividends paid 6 (19) (16) (23)
Coupon paid on Tier 1 notes 6 (8) (8) (16)
Interest paid on borrowings (30) (23) (48)
Payment of lease liabilities - principal (1) (1) (2)
Net cash (outflow)/inflow from financing activities (213) (49) 52
Net (decrease)/increase in cash and cash equivalents (22) 357 915
Foreign exchange differences on cash balances (4) (3) (2)
Cash and cash equivalents at start of period 2,600 1,687 1,687
Cash and cash equivalents at end of period 2,574 2,041 2,600
Cash available on demand 686 570 808
Units in liquidity funds 1,888 1,471 1,792
Cash and cash equivalents at end of period 2,574 2,041 2,600
The notes are an integral part of these financial statements.
Notes to the Condensed consolidated interim financial statements
1. BASIS OF PREPARATION
These Condensed consolidated interim financial statements comprise the
Condensed consolidated financial statements of Just Group plc ("the Company")
and its subsidiaries, together referred to as "the Group", as at, and for the
six-month period ended, 30 June 2025. These have been prepared in accordance
with the UK-adopted International Accounting Standard 34, 'Interim Financial
Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority.
These Condensed consolidated interim financial statements need to be read in
conjunction with the Annual Report and Accounts for the year ended 31 December
2024 which were prepared under the historical cost convention, as modified by
the revaluation of land and buildings, and financial assets and financial
liabilities (including derivative instruments and investment contract
liabilities) at fair value.
These Condensed consolidated interim financial statements do not comprise
statutory accounts within the meaning of Section 434 of the Companies Act
2006. The results for the year ended and position as at 31 December 2024 have
been taken from the Group's 2024 Annual Report and Accounts. The Group's 2024
Annual Report and Accounts was approved by the Board of Directors on 6 March
2025 and delivered to the Registrar of Companies. The report of the auditor on
those accounts was (i) unqualified, (ii) did not contain any statement under
section 498 (2) or (3) of the Companies Act 2006, and (iii) did not contain an
emphasis of matter paragraph. The results for the six month period ended 30
June 2024 have been taken from the Group's Interim Results for the six months
to 30 June 2024.
(a) Going concern
A going concern assessment has been undertaken and having completed this
assessment, the Directors are satisfied that the Group has adequate resources
to continue to operate as a going concern for a period of not less than 12
months from the date of approval of this report and that there is no material
uncertainty in relation to going concern, including the impact of
climate-related risk. Further information regarding the Group's exposure to
physical and transition risks of climate change is included in the FY24 Annual
Report disclosures on the TCFD disclosure framework.
This assessment includes an update on the previous annual assessment performed
earlier in the year which covered the period to 31 December 2026 and
considered the Group's business plan approved by the Board, the projected
solvency and liquidity positions of the Group, impacts of economic stresses,
the Group's financing arrangements and a range of forecast scenarios with
differing levels of new business and associated capital requirements.
As part of this updated assessment, the Directors have also considered the
Group's performance in the period against the business plan, the liquidity
position, solvency position and the potential impact on solvency from stresses
in a severe economic downside scenario.
The Group has a robust liquidity framework designed to withstand a range of
"worst case" 1-in-200 year historic liquidity events. The Group completed an
external refinancing exercise of its Tier 2 debt in 2024, with the issuance of
£400m 10 year notes as part of continued management of the Group's debt
financing profile. The Group's liquid resources includes an undrawn revolving
credit facility of up to £400m for general corporate and working capital
purposes. The Group's business plan indicates that liquidity headroom will be
maintained above the Group's borrowing facilities and financial covenants will
be met throughout the going concern period.
The Group maintains eligible capital in excess of the value of the Solvency
Capital Requirement ("SCR") which is determined based on capital required to
absorb 1-in-200 year stress tests for longevity risk, property risk, credit
risk and interest rate risk over the next years' time horizon. The resilience
of the solvency capital position has been tested under a range of adverse
scenarios including stresses to property prices, mortality, risk-free interest
rates and the credit quality of assets in the Group's investment portfolio.
Eligible own funds exceeded the minimum capital requirement in all these
scenarios.
The Group has also considered the potential impact of the announcement
reported in note 18 of these interim financial statements including the
statement of the acquirer's intentions set out in the announcement regarding
the Group's strategy, growth plans, senior management, brand and operational
footprint. On the basis of those publicly stated intentions, the Directors
believe that the proposed acquisition will not have any significant adverse
impact on the conclusions reached regarding going concern of the Group.
Based on this assessment, the Directors conclude that it remains appropriate
to continue to apply the going concern assumption in preparing the Condensed
consolidated interim financial statements; assets and liabilities are valued
on the assumption that there are adequate resources to continue in business
and meet obligations as they fall due.
(b) New accounting standards and new material accounting policies
The Group has applied UK-adopted IFRS for the preparation of these Condensed
consolidated interim financial statements. The accounting policies applied in
the preparation of these Condensed consolidated interim financial statements
are consistent with those applied in the preparation of the Group's
consolidated financial statements for the year ended 31 December 2024. There
have been no changes in accounting standards adopted in 2025 that have a
material impact on the Group.
New accounting standards and amendments to accounting standards that are in
issue but not yet endorsed have not been adopted by the Group in these interim
financial statements. yet. These are not expected to have a significant impact
on the results within the financial statements as such standards or changes
thereto are not likely to affect the measurement basis with impacts restricted
to presentation and disclosure.
(c) Material accounting policies and the use of judgements, estimates and
assumptions
The preparation of Condensed consolidated interim financial statements
requires the Group to select accounting policies and make estimates and
judgements that affect items reported in the primary financial statements and
notes to the Condensed consolidated interim financial statements.
All estimates are based on management's knowledge of current facts and
circumstances, assumptions based on that knowledge and predictions of future
events and actions. Actual results may differ significantly from those
estimates. Sensitivities of investments and insurance contracts to reasonably
possible changes in significant estimates and assumptions are included in
notes 9(f) and 11(d) respectively.
The judgements, estimates and assumptions adopted by the Group are consistent
with those applied in the preparation of the Group's consolidated financial
statements for the year ended 31 December 2024. No significant methodology
changes have been applied in the Condensed consolidated interim financial
statements; economic estimates and assumptions reflect current market
conditions.
2. SEGMENTAL REPORTING
Segmental analysis
The Group has a single reportable segment "Insurance" which is reconciled to
the total Group result by including the non-reportable Advisory segment plus
the result of other Group companies, such as holding companies that primarily
perform corporate activities.
The Insurance segment writes insurance products for the at/in-retirement
market and the Defined Benefit de-risking "DB" market. The primary products
written by the Group are DB and Guaranteed Income for Life "GIfL". Premiums
received from these contracts are invested in debt and other fixed income
securities, and other fixed income investments including illiquid assets,
Lifetime Mortgages and liquidity funds.
The Group's Advisory segment performs activities regarding the arranging of
retirement income products through regulated advice and intermediary services
and the provision of licensed software to financial advisers, banks, building
societies, life assurance companies and pension trustees. This segment is
currently below the reportable segment thresholds and therefore the results of
this segment are not disclosed.
The metrics used by the Chief Operating Decision Maker "CODM" (identified as
the Group Executive Committee) to evaluate the performance of operating
segments include:
· Underlying operating profit
· Retirement income sales
Premium information is analysed by product line and includes shareholder
funded DB, DB Partner (funded reinsurance) and GIfL products. Profitability
information used by the CODM within the insurance operating segment is not
analysed by product.
The Group primarily operates in the material geographical segment of the
United Kingdom.
Segmental reporting and reconciliation to financial information
Six months ended 30 June 2025 Six months ended 30 June 2024
Insurance Other Total Insurance Other Total
£m
£m
£m
£m
£m
£m
New business profits(1,2) 162 - 162 222 - 222
CSM amortisation(1) (35) - (35) (33) - (33)
Net underlying CSM increase 127 - 127 189 - 189
In-force operating profit(1) 121 5 126 111 3 114
Other Group companies' operating results(1,3) - (9) (9) - (7) (7)
Development costs and other(1,3) (13) (3) (16) (9) (5) (14)
Finance costs(1,4) (39) 3 (36) (42) 9 (33)
Underlying operating profit(1) 196 (4) 192 249 - 249
4 - 4 (3) - (3)
Reconciliation to Profit before tax
Operating experience and assumption changes(1)
Investment and economic movements(1) 21 2 23 22 1 23
Strategic expenditure(1) (2) (8) (10) (10) (3) (13)
Adjustment for transactions reported directly in equity in IFRS(4) 12 (4) 8 14 (3) 11
Adjusted profit before tax(1) 231 (14) 217 272 (5) 267
Deferral of profit in CSM(1) (152) - (152) (193) - (193)
Profit before tax 79 (14) 65 79 (5) 74
Year ended 31 December 2024
Insurance Other Total
£m
£m
£m
New business profits(1,2) 460 - 460
CSM amortisation(1) (71) - (71)
Net underlying CSM increase 389 - 389
In-force operating profit(1) 226 10 236
Other Group companies' operating results(1) - (17) (17)
Development costs and other(1) (24) (11) (35)
Finance costs(1,4) (82) 13 (69)
Underlying operating profit(1) 509 (5) 504
(37) - (37)
Reconciliation to Profit before tax
Operating experience and assumption changes(1)
Investment and economic movements(1) 24 (6) 18
Strategic expenditure(1) (8) (15) (23)
Adjustment for transactions reported directly in equity in IFRS(4) 26 (6) 20
Adjusted profit before tax(1) 514 (32) 482
Deferral of profit in CSM(1) (369) - (369)
Profit before tax 145 (32) 113
(1) ( ) See glossary for definition
(2) New business profits are determined based on economic
conditions of the target asset mix at the quotation date for GIfL business and
market condition date (see glossary for definition) for DB business and is the
metric used by the CODM in evaluating profitability of new business. The CSM
from new business is measured based on the IFRS 17 recognition date and
therefore there is a recognition date reconciling item between the segmental
reporting profit and the CSM recognised from new business in note 11(c) and
this is reconciled in the Additional financial information.
(3) The classification of costs between 'Other group companies
operating results' and 'Development costs and other' has been aligned with the
presentation in Solvency II.
(4 ) The adjustment for transactions reported directly in
equity in IFRS primarily relates to interest on the Tier 1 notes which are
classified as equity instruments. Coupon payments are reported within Finance
costs within the Underlying operating profit metric, and are therefore removed
in the reconciliation to IFRS profit before tax. The amount reported in the
other segment represents the difference between interest charged to the
insurance segment in respect of internal Tier 1 notes and interest incurred by
the Group in respect of external Tier 1 notes.
Product information analysis
Additional analysis relating to the Group's products is presented below:
Six months ended Six months ended Year ended
30 June 2025
31 December 2024
£m 30 June 2024 £m
£m
Defined Benefit De-risking Solutions ("DB") 1,636 1,874 4,275
Guaranteed Income for Life contracts ("GIfL")(1) 520 600 1,033
Retirement Income sales (shareholder funded) 2,156 2,474 5,308
DB Partner (funded re) - - 1,101
Retirement Income sales 2,156 2,474 6,409
Movements in premiums receivable (384) (441) 4
Premium cash flows 1,772 2,033 6,413
(1 ) GIfL includes UK GIfL, South Africa GIfL and Care Plans.
Revenue is materially allocated to the insurance segment.
3. INSURANCE SERVICE RESULT
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Insurance revenue
Release of CSM for services provided 100 86 177
Release of risk adjustment for non-financial risk for risks expired 3 5 11
Expected incurred claims and other insurance service expenses 885 753 1,589
Recovery of insurance acquisition cash flows 21 15 32
Total insurance revenue 1,009 859 1,809
Insurance service expenses
Actual claims and maintenance expenses (882) (744) (1,589)
Amortisation of insurance acquisition cash flows (21) (15) (32)
Total insurance service expenses (903) (759) (1,621)
Net expenses from reinsurance contracts (15) (29) (39)
Insurance service result 91 71 149
The release of CSM for services provided recognised within Insurance revenue
represents 6.8% annualised (30 June 2024: 6.4% annualised / 31 December 2024:
6.1%) of the CSM reserve balance immediately prior to release. On a net of
reinsurance basis, the CSM release of £87m (30 June 2024: £75m / 31 December
2024: £154m) represents 6.8% annualised (30 June 2024: 6.7% annualised / 31
December 2024: 6.2%) of the CSM balance immediately prior to release. The
release in the first six months of 2025 includes the effects of the deferral
in CSM of the demographic assumption changes made at 31 December 2024 and the
new business written in 2025.
Actual claims and maintenance expenses are broadly in line with expectation.
These amounts exclude investment components such as payments within guarantee
periods, which amount to £163m (30 June 2024: £118m / 31 December 2024:
£296m). The continued increase reflects the growth of the in force book.
4. NET INVESTMENT RESULT
Six months ended Six months ended Year ended 31 December 2024
30 June 2025 30 June 2024 £m
£m £m
Investment return
Interest income on financial assets:
- at amortised cost 87 59 135
- designated at Fair value through profit and loss ("FVTPL") 460 416 869
- mandatorily measured at FVTPL: LTMs 153 102 213
700 577 1,217
Movement in fair value of financial assets:
- designated at FVTPL (283) (627) (951)
- mandatorily measured at FVTPL: LTMs 43 (172) (212)
- mandatorily measured at FVTPL: Derivatives 285 46 (180)
45 (753) (1,343)
Foreign exchange losses on amortised cost assets (4) (4) (2)
Investment return 741 (180) (128)
Net finance (expenses)/income from insurance contracts
Interest accreted (887) (844) (1,693)
Effect of changes in interest rates and other financial assumptions 273 1,173 2,142
Effect of measuring changes in estimates at current rates and adjusting the 8 19 31
CSM at rates on initial recognition
Net finance (expenses)/income from insurance contracts (606) 348 480
Net finance income/(expenses) from reinsurance contracts 5 (34) (52)
Movement in investment contract liabilities (2) - (2)
Net investment result 138 134 298
The Net investment result represents the net effect of the return on
investments and the impact of economic assumptions on the valuation of
insurance and investment contract liabilities. The net impact of Investment
return and finance income/expense on insurance and reinsurance contracts will
not completely offset for a number of reasons, including:
• the term structures for financial investments held and net
insurance liabilities are not identical;
• the existence of surplus assets held on the balance sheet which do
not back insurance liabilities and the value of which are subject to changes
in interest rates; and
• the deduction of a credit default allowance from the interest rate
used to value insurance liabilities.
Investment return
The growth in interest income reflects both the Group's continued investment of new business premiums into additional holdings of fixed income investments in an economic environment of higher and more normalised long-term interest rates. The Group invested £1.0bn into illiquid fixed income investments during the first six months of 2025 to back our insurance liabilities. The growth in interest on amortised cost assets reflects the £4.0bn (HY 2025 £3.3bn) size of the portfolio of gilts that are held at amortised cost in the IFRS balance sheet. In the Solvency II balance sheet, this portfolio is held at fair value and used to manage interest rate volatility.
The Group's fixed income portfolios including investments designated at FVTPL
and also LTMs are long dated and are exposed to changes in long term risk free
rates. Long-term interest rates at 30 June 2025 are broadly in line with those
at the start of the year and have not had a significant impact on the
investment result. Losses on fixed income investments designated at FVTPL have
primarily arisen from revaluation of the Group's investments in US Dollar
bonds as Sterling has strengthened against the US Dollar. The Group has no
appetite for currency risk and therefore holds cross-currency swaps to
mitigate this risk exposure, which have experienced an offsetting investment
gain in the period.
Net finance (expenses)/income from insurance contracts
Interest accreted of £887m (30 June 2024: £844m / 31 December 2024: £1,693m) represents the effect of unwinding of the discount rates on the future cash flow and risk adjustment components of the insurance contract liabilities and the effect of interest accretion on the CSM. The increased accretion in the current period compared with the prior year reflects the growth in the size of the insurance portfolio.
The principal economic assumption changes impacting the movement in insurance liabilities during the period of £273m gain (30 June 2024: £1,173m gain / 31 December 2024: £2,142m gain) relate to discount rates and inflation. The CSM is held at locked-in discount rates and benefit inflation, and hence the effect of the change in interest rates experienced in the period applies only to the future cash flows and risk adjustment components of the insurance contract liabilities.
5. INCOME TAX
Six months ended Six months Year ended
30 June 2025
ended
31 December
£m
30 June 2024
2024
£m
£m
Current taxation
Current year tax on current year profits 3 2 4
Adjustments in respect of prior periods - 4 6
Effect of tax losses carried back on current tax - - (1)
Total current tax 3 6 9
Deferred taxation
Deferred tax recognised for losses in the current period (5) (3) (13)
Origination and reversal of temporary differences - 1 2
Adjustments in respect of prior periods (1) (1) -
Effect of tax losses carried back on current tax - - 1
Tax relief on the transitional adjustment on IFRS 17 implementation 17 17 34
Total deferred tax 11 14 24
Total income tax recognised in profit or loss 14 20 33
The deferred tax assets and liabilities have been calculated at 25%, the
current corporation tax rate, and the rate at which they are expected to
reverse. The Group has assessed that the deferred tax balances will be fully
recoverable based on the Group's five-year business plan and projection
thereafter.
In accordance with Paragraph 4A of IAS 12 "Income taxes", the Group has not
recognised nor disclosed information about deferred tax assets and liabilities
related to Pillar Two income taxes. The Pillar Two legislation has not had a
material impact on the tax position.
Reconciliation of total income tax to the applicable tax rate
Six months ended Six months Year ended
30 June 2025
ended
31 December
£m
30 June 2024
2024
£m
£m
Profit on ordinary activities before tax 65 74 113
Income tax at 25% (30 June 2024 / 31 Dec 2024: 25%) 16 18 28
Effects of:
Expenses not deductible for tax purposes - - -
Adjustments in respect of prior periods (1) 3 6
Other (1) (1) (1)
Total income tax recognised in profit or loss 14 20 33
6. DIVIDENDS AND APPROPRIATIONS
Dividends and appropriations paid in the period were as follows:
Six months Six months ended Year ended
31 December 2024
ended 30 June 2024
30 June 2025
£m
£m
£m
Final dividend in respect of prior year end 19 16 16
Interim dividend in respect of current year end - - 7
Total dividends paid 19 16 23
Coupon payments in respect of Tier 1 notes(1) 8 8 16
Total distributions to equity holders in the period 27 24 39
(1) Coupon payments on Tier 1 notes are treated as an appropriation of
retained earnings and, accordingly, are accounted for when paid.
A final dividend in respect of 2024 of 1.80 pence per ordinary share was
declared on 6 March 2025 and paid on 14 May 2025. The final dividend in
respect of 2023 and paid on 15 May 2024 represented a dividend of 1.50 pence
per ordinary share.
In addition to the amounts recognised above, subsequent to 30 June 2025, the
Directors approved an interim dividend for 2025 of 0.84 pence per ordinary
share, which will be paid on 15 September 2025. The 2024 interim dividend paid
on 4 October 2024 represented a dividend of 0.70 pence per ordinary share.
7. EARNINGS PER SHARE
Set out below are the earnings and weighted average number of shares used in
determining Basic and Diluted Earnings Per Share ("EPS") on an IFRS basis.
Basic EPS is reconciled to the APM of underlying EPS in the Business Review.
Earnings Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Profit attributable to equity holders of Just Group plc 51 54 80
Coupon payments in respect of Tier 1 notes (net of tax)(1) (6) (6) (12)
Profit attributable to ordinary equity holders of Just Group plc (basic) 45 48 68
Effect of potentially dilutive share options - - -
Diluted profit attributable to ordinary equity holders of Just Group plc 45 48 68
(1 ) Earnings for the purposes of determining EPS and diluted EPS includes
an adjustment for amounts in respect of the Tier 1 notes. This is based on the
judgement that the rights associated with the Tier 1 notes are similar to
preference shares. Adjustments include coupon payments and any gains/losses on
redemption.
Weighted average number of shares(2) Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Million million million
Basic weighted average number of shares 1,042 1,035 1,040
Effect of potentially dilutive share options 8 12 13
Diluted weighted average number of shares 1,050 1,047 1,053
(2 ) The weighted-average number of ordinary shares excludes shares held by
the Employee Benefit Trust on behalf of the Company to satisfy future
exercises of employee share scheme awards.
Earnings Per Share Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Pence pence pence
Basic Earnings per share 4.3 4.6 6.5
Diluted Earnings per share 4.3 4.6 6.5
8. FINANCIAL INVESTMENTS
The table below summarises the classification of the Group's financial
investments.
Analysis of financial investments
30 June 2025 31 December 2024 30 June 2024
£m
£m
£m
Debt securities and other fixed income securities
- Debt securities 12,779 12,860 12,210
- Infrastructure debt securities 2,697 2,266 1,781
- Long income real estate debt securities 878 884 367
16,354 16,010 14,358
Units in liquidity funds 1,888 1,792 1,471
Investment funds 366 399 510
Deposits with credit institutions 701 808 621
Loans secured by commercial mortgages 1,005 809 800
Long income real estate(1) 782 787 758
Infrastructure loans(1) 1,255 1,246 1,088
Other loans 195 195 183
Total investments measured at FVTPL - designated 22,546 22,046 19,789
Lifetime mortgages 5,912 5,637 5,554
Derivative financial assets 2,893 2,756 2,343
Total investments measured at FVTPL - mandatory 8,805 8,393 7,897
Total investments measured FVTPL 31,351 30,439 27,686
Gilts - subject to repurchase agreements 3,972 3,951 3,343
Total investments measured at amortised cost 3,972 3,951 3,343
Total financial investments 35,323 34,390 31,029
(1) Long income real estate includes £156m (31 December 2024: £157m /
30 June 2024: £163m) residential and £626m (31 December 2024: £630m / 30
June 2024: £595m) commercial ground rents.
Units in liquidity funds comprise wholly of units in funds which invest in
very short dated liquid assets. The majority of investments included in debt
securities and other fixed income securities are listed investments. The Group
also originates illiquid fixed income investments including infrastructure,
real estate and private placements and also longer duration investments in
long income real estate investments to match the cash flow profile of DB
deferred liabilities.
The long dated gilts subject to repurchase agreements that are held within an
amortised cost portfolio on the IFRS balance sheet, are at fair value on the
Solvency II balance sheet and used to manage interest rate volatility.
Deposits with credit institutions with a carrying value of £701m (31 December
2024: £808m / 30 June 2024: £621m) have been pledged with the counterparty
as collateral in respect of the Group's derivative and repurchase agreement
financial instruments.
9. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
This note explains the methodology for valuing the Group's financial assets
and liabilities fair value, including financial investments, and provides
disclosures in accordance with IFRS 13 "Fair value measurement" including an
analysis of such assets and liabilities categorised in a fair value hierarchy
based on market observability of valuation inputs.
(a) Determination of fair value and fair value hierarchy
All assets and liabilities for which fair value is measured or disclosed are
categorised within the fair value hierarchy described as follows, based on the
lowest level input that is significant to the fair value measurement as a
whole.
Level 1
Inputs to Level 1 fair values are unadjusted quoted prices in active markets
for identical assets and liabilities that the entity can access at the
measurement date.
Level 2
Inputs to Level 2 fair values are inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly
or indirectly. A Level 2 input must be observable for substantially the full
contractual term of the instrument. Level 2 inputs include the following:
· quoted prices for similar assets and liabilities in active
markets;
· quoted prices for identical assets or similar assets in markets
that are not active, the prices are not current, or price quotations vary
substantially either over time or among market makers, or in which very little
information is released publicly;
· inputs other than quoted prices that are observable for the asset
or liability; and
· market-corroborated inputs.
Level 3
Inputs to Level 3 fair values include significant unobservable inputs.
Unobservable inputs are used to measure fair value to the extent that
observable inputs are not available, thereby allowing for situations in which
there is little, if any, market activity for the asset or liability at the
measurement date. However, the fair value measurement objective remains the
same, i.e. an exit price at the measurement date from the perspective of a
market participant that holds the asset or owes the liability. Unobservable
inputs reflect the same assumptions as those that the market participant would
use in pricing the asset or liability including those about risk.
Further information regarding valuation technique and the inputs used in the
fair value measurement of level 3 assets is included in section (e).
Assessment of the observability of pricing information
All assets classified as Level 1 and 2 are valued using observable market data
from standard market pricing sources such as Bloomberg.
Debt securities and financial derivatives categorised as Level 1 and Level 2
are valued using observable data, either directly (as prices) or indirectly
(derived from prices). The pricing data for the Level 2 instruments undergoes
expert review to determine its quality. For instance, the pricing data is
sourced from multiple external sources (such as Bloomberg and Thomson Reuters)
and is subject to several monitoring controls, such as monthly price
variances, stale price reviews and variance analysis. If the data quality is
not sufficiently high, the instrument is reassigned to Level 3.
If Bloomberg's pricing service (BVAL) assigns a low score to the pricing data
provided by brokers/asset managers, the instruments are then classified as
Level 3.
(b) Analysis of assets and liabilities held at fair value according to fair
value hierarchy
30 June 2025 31 December 2024
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£m
£m
£m
£m
£m
£m
£m
£m
Assets held at FVTPL
Units in liquidity funds 1,887 1 - 1,888 1,792 - - 1,792
Investment funds - 119 247 366 - 110 289 399
Debt securities and other fixed income securities 6,487 4,441 5,426 16,354 6,291 4,964 4,755 16,010
Deposits with credit institutions 701 - - 701 808 - - 808
Loans secured by commercial mortgages - - 1,005 1,005 - - 809 809
Long income real estate - - 782 782 - - 787 787
Infrastructure loans - - 1,255 1,255 - - 1,246 1,246
Other loans - 62 133 195 - 61 134 195
Lifetime mortgages - - 5,912 5,912 - - 5,637 5,637
Derivative financial assets - 2,892 1 2,893 - 2,750 6 2,756
Financial investments 9,075 7,515 14,761 31,351 8,891 7,885 13,663 30,439
Investment property - - 25 25 - - 27 27
Fair value of financial assets held at amortised cost
Gilts - subject to repurchase agreements (fair value) 3,574 - - 3,574 3,604 - - 3,604
Total financial assets and investment property 12,649 7,515 14,786 34,950 12,495 7,885 13,690 34,070
Liabilities held at fair value
Investment contract liabilities - 40 3 43 - 37 5 42
Derivative financial liabilities - 2,936 15 2,951 - 2,997 18 3,015
Repurchase obligation 287 - 287 - - - -
-
Fair value of financial liabilities at amortised cost
Obligations for repayment of cash collateral received (fair value) 604 - - 604 662 - - 662
Loans and borrowings at amortised cost (fair value) - 706 - 706 - 862 - 862
Repurchase obligation (fair value) - 3,740 - 3,740 - 3,878 - 3,878
Total financial liabilities 604 7,709 18 8,331 662 7,774 23 8,459
30 June 2024
Level 1 Level 2 Level 3 Total
£m
£m
£m
£m
Assets held at FVTPL
Units in liquidity funds 1,466 5 - 1,471
Investment funds - 112 398 510
Debt securities and other fixed income securities 5,701 5,212 3,445 14,358
Deposits with credit institutions 621 - - 621
Loans secured by commercial mortgages - - 800 800
Long income real estate - - 758 758
Infrastructure loans - - 1,088 1,088
Other loans - 53 130 183
Lifetime mortgages - - 5,554 5,554
Derivative financial assets - 2,343 - 2,343
Financial investments 7,788 7,725 12,173 27,686
Investment property - - 27 27
Fair value of financial assets held at amortised cost
Gilts - subject to repurchase agreements (fair value) 3,213 - - 3,213
Total financial assets and investment property 11,001 7,725 12,200 30,926
Liabilities held at fair value
Investment contract liabilities - - 38 38
Derivative financial liabilities - 2,369 10 2,379
Fair value of financial liabilities at amortised cost
Obligations for repayment of cash collateral received (fair value) 690 - - 690
Loans and borrowings at amortised cost (fair value) - 706 - 706
Repurchase obligation (fair value) - 3,332 - 3,332
Total financial liabilities 690 6,407 48 7,145
(c) Transfers between levels
The Group's policy is to assess pricing source changes and determine transfers
between levels as of the end of each half-yearly reporting period. Transfers
between levels arise from changes in the pricing sources. During the period
there were the following transfers between levels:
· Transfers from Level 2 to Level 1 as a result of improved pricing
sources were £802m (31 December 2024: £1,380m / 30 June 2024: £1,126m)
· Transfers from Level 1 to Level 2 due to a fall in pricing
quality were £403m (31 December 2024: £275m / 30 June 2024: £314m)
(d) Reconciliation of movement in Level 3 assets and liabilities measured at
fair value
Reconciliation of the opening and closing recorded amounts of significant
Level 3 assets and liabilities held at fair value.
Six months ended Investment Debt securities Loans secured Long income Infrastructure Other Lifetime mortgages
30 June 2025
funds and other fixed by commercial mortgages real estate loans loans £m
£m income securities £m £m £m £m
£m
At 1 January 2025 289 4,755 809 787 1,246 134 5,637
Purchases/advances/ deposits 6 749 214 9 6 - 269
Transfers to Level 3 2 147 - - - - -
Transfers from Level 3 - (115) - - - - -
Sales/redemptions/ payments (58) (26) (33) (10) (20) - (187)
Recognised in profit or loss in investment return
- Realised gains and losses - - - - - - 75
- Unrealised gains and losses 8 (82) 15 (5) 23 (5) (31)
Interest accrued - (2) - 1 - 4 149
At 30 June 2025 247 5,426 1,005 782 1,255 133 5,912
Year ended Investment Debt securities Loans secured Long income Infrastructure loans Other Lifetime mortgages
31 December 2024
funds and other fixed by commercial mortgages real estate £m loans £m
£m income securities £m £m £m
£m
At 1 January 2024 398 2,914 764 779 1,113 123 5,681
Purchases/advances/deposits 81 2,417 178 235 101 - 340
Transfers to Level 3 - 192 - - - - -
Transfers from Level 3 - (467) - - - - -
Reclassification between level 3 - - - (119) 119 - -
Sales/redemptions/payments (180) (107) (127) (13) (39) - (375)
Recognised in profit or loss in investment return
- Realised gains and losses (11) - - - - - 150
- Unrealised gains and losses 1 (175) (7) (95) (43) 2 (364)
Interest accrued - (19) 1 - (5) 9 205
At 31 December 2024 289 4,755 809 787 1,246 134 5,637
Six months ended Investment Debt securities Loans secured Long income Infrastructure Other Lifetime mortgages
30 June 2024 funds and other fixed by commercial mortgages real estate loans loans £m
£m income securities £m £m £m £m
£m
At 1 January 2024 398 2,914 764 779 1,113 123 5,681
Purchases/advances/deposits 20 1,027 117 24 25 - 115
Transfers to Level 3 - 106 - - - - -
Transfers from Level 3 - (384) - - - - -
Sales/redemptions/payments (38) (75) (68) (7) (22) - (167)
Recognised in profit or loss in investment return
- Realised gains and losses - - - - - - 66
- Unrealised gains and losses 18 (146) (13) (38) (28) 2 (239)
Interest accrued - 3 - - - 5 98
At 30 June 2024 398 3,445 800 758 1,088 130 5,554
(e) Valuation techniques and the inputs used in the fair value measurement
of Level 3 assets
(i) Investment funds
Investment funds classified as Level 3 are structured entities that operate
under contractual arrangements which allow a group of investors to invest in a
pool of corporate loans without any one investor having overall control of the
entity. The average discount rate used is 8% (31 December 2024: 8% and 30 June
2024: 10%). The sensitivity of the fair value of investment funds to changes
in discount rates is not material.
(ii) Debt securities and other fixed income securities
In line with market practice, fixed-income securities are generally valued
using independent pricing services such as Bloomberg and Thomson Reuters. When
pricing data is unavailable from pricing services, prices are sourced from
external asset managers or internal models and classified as Level 3 under the
fair value hierarchy due to the use of significant unobservable inputs. These
include private placement bonds, asset backed securities and illiquid
corporate bonds.
(iii) Loans secured by commercial mortgages
Loans secured by commercial mortgages are valued using a discounted cash flow
model. The contractual cash flows are discounted by a risk-free discount rate
with additional spreads to allow for credit and illiquidity risks. The
additional spreads used in the discount rate are calculated using an
internally developed methodology, which takes into consideration the credit
rating of each loan and refers to external market spread indices to assess
market movements in spreads and the impact of changes in credit ratings.
(iv) Long income real estate
Long income real estate is valued using discounted cash flow analysis using
assumptions based on the repayment of the underlying loan.
In determining the credit spreads for the valuation of residential ground
rents, the Group has taken a market participant approach, which requires
consideration of the assumptions, including those about risk, that a market
participant would make at the balance sheet date for valuing such assets. The
Group notes the continued significant uncertainty regarding the outcome of the
consultation instigated by the prior Government to restrict residential ground
rents. The Government has stated it intends to bring forward proposals to end
the leasehold system, including addressing residential ground rents. At the
time of preparing this report no further information has been published by the
Government and therefore no change has been made to our approach to the
adjustment applied to the valuation to reflect this uncertainty. The
adjustment reflected an expected increase in credit spread and consequential
increase the credit risk deduction for defaults. The sensitivity of
residential ground rents to more significant adverse changes in credit quality
has been evaluated in light of the potential scenarios proposed in the
consultation. As shown in the sensitivities in section (f), an additional
sensitivity has been performed under the scenario that the credit rating of
the Group's holding in residential ground rents reduces to BBB.
(v) Infrastructure loans
Infrastructure loans are valued using a discounted cash flow model. The
contractual cash flows from the loans are discounted by a risk-free discount
rate plus additional spreads to allow for credit and illiquidity risks. The
additional spreads used in the discount rate are calculated using an
internally developed methodology, which takes into consideration the credit
rating of each loan and refers to external market spread indices to assess
market movements in spreads and the impact of changes in credit ratings.
(vi) Other loans
Other loans classified as Level 3 are mainly commodity trade finance loans.
These are valued using discounted cash flow analyses.
(vii) Lifetime mortgages
Methodology and judgement underlying the calculation of lifetime mortgages
The valuation of lifetime mortgages is determined using internal models which
project future cash flows expected to arise from each loan. Future cash flows
allow for assumptions relating to future expenses, future mortality
experience, voluntary redemptions and repayment shortfalls on redemption of
the mortgages due to the NNEG. The fair value is calculated by discounting the
future cash flows at a swap rate plus a liquidity premium.
Under the NNEG, the amount recoverable by the Group on eligible termination of
mortgages is capped at the net sale proceeds of the property. A key judgement
is with regard to the calculation approach used. The Black 76 variant of the
Black-Scholes option pricing model has been used in conjunction with an
approach using best estimate future house price growth assumptions.
The methodology and assumptions used in the cash flow models used to value
lifetime mortgages would be reconsidered if any information is obtained from
future portfolio sales that is relevant and applicable to the remaining
portfolio.
Principal assumptions underlying the calculation of lifetime mortgages
Principal assumptions underlying the calculation of lifetime mortgages include
the items set out below.
· Maintenance expenses
Assumptions for future policy expense levels are based on the Group's recent
expense analyses. The assumed future expense levels incorporate an annual
inflation rate allowance of 3.4% (31 December 2024: 3.7% / 30 June 2024:
3.7%).
· Mortality
Mortality assumptions have been derived with reference to England and Wales
population mortality using the CMI 2023 model for mortality improvements.
These base mortality and improvement tables have been adjusted to reflect the
expected future mortality experience of mortgage contract holders, taking into
account the medical and lifestyle evidence collected during the sales process
and the Group's assessment of how this experience will develop in the future.
This assessment takes into consideration relevant industry and population
studies, published research materials and management's own experience. The
Group has considered the possible impact of the COVID-19 pandemic on its
mortality assumptions and has included an allowance for the expected future
direct and indirect impacts of this and wider UK mortality trends, which
remains unchanged from 31 December 2024.
· Property prices
The approach in place as at 30 June 2025, which is the same as at 31 December
2024, is to calculate the value of a property by taking the latest Automated
Valuation Model "AVM" result, or latest surveyor value if more recent,
indexing this to the balance sheet date using Nationwide UK house price
indices and then making a further allowance for property dilapidation since
the last revaluation date.
· Future property price
In the absence of a reliable long-term forward curve for UK residential
property price inflation, the Group has made an assumption about future
residential property price inflation based upon available market and industry
data. These assumptions have been derived with reference to the long-term
expectation of the UK consumer price index inflation metric, "CPI", plus an
allowance for the expectation of house price growth above CPI (property risk
premium) less a margin for a combination of risks including property
dilapidation and basis risk. An additional allowance is made for the
volatility of future property prices. This results in a single rate of future
house price growth of 3.3% in all periods reported, with a volatility
assumption of 13% per annum in all periods reported. The setting of these
assumptions includes consideration of future long and short-term forecasts,
the Group's historical experience, benchmarking data, and future uncertainties
including the possible impacts of the COVID-19 pandemic and a higher interest
and inflation rate economic environment on the UK property market. Changes in
house price indices over the last 12 months have been broadly in line with our
long-term expectations with a slight weakening more recently. As such, at this
stage our view is that there is no clear indication of a change in the
long-term prospects of the housing market. In light of this, the future house
price growth and property volatility assumptions have been maintained at the
same level as assumed at 31 December 2024.
· Voluntary redemptions
Assumptions for future voluntary redemption levels are based on the Group's
recent experience analyses and management's expert judgement. The assumed
redemption rate varies by factors such as product type. duration, issue age
and property value with base assumptions varying between 0.5% and 3.7% for
loans in Just Retirement Limited ("JRL") (31 December 2024: between 0.5% and
3.7% / 30 June 2024: between 0.5% and 4.1%) and between 0.2% and 6.0% (31
December 2024: between 0.2% and 6.0% / 30 June 2024: between 0.6% and 6.8%)
for loans in Partnership Life Assurance Company Limited ("PLACL").
· Liquidity premium
The liquidity premium partly reflects the illiquidity of the loan and also
spreads the recognition of profit over the lifetime of the loan. Once
calculated, the liquidity premium remains unchanged at future valuations
except when further advances are taken out. The average liquidity premium for
loans held within JRL is 3.1% (31 December 2024: 3.2% / 30 June 2024: 3.2%)
and for loans held within PLACL is 3.3% (31 December 2024: 3.3% / 30 June
2024: 3.4%).
(f) Sensitivity analysis
The sensitivities disclosed in this note only consider the impact of the
change in these assumptions on the fair value of the assets. Some of these
sensitivities would also impact the yield on assets and hence the valuation
discount rate used to determine the insurance contract liabilities. For some
of these sensitivities, the impact on the value of insurance contract
liabilities and hence profit before tax is included in note 11(d).
Sensitivities are performed for reasonably possible alternative assumptions
for unobservable inputs used in the valuation model, either as at the
valuation date or from a suitable recent reporting period where appropriate to
do so, that could give rise to significant changes in the fair value of the
assets.
Financial investments Principal assumption Sensitivity applied 30 June 2025 31 December 2024 30 June 2024
£m
£m
£m
Debt securities and other fixed income securities Credit spreads +100bps (420) (420) (271)
Loans secured by commercial mortgages Credit spreads +100bps (26) (27) (29)
Long income real estate Credit spreads +100bps (115) (114) (150)
Credit rating Downgrade of residential ground rents to BBB (4) (4) (11)
Infrastructure loans Credit spreads +100bps (84) (87) (78)
Lifetime mortgages Base mortality -5% (25) (23) (17)
Immediate property price fall -10% (89) (88) (80)
Future property price growth -0.5% (51) (51) (48)
Liquidity premium +10bps (47) (46) (47)
The analysis has been prepared for a change in each variable with other
assumptions remaining constant. In reality such an occurrence is unlikely due
to correlation between the assumptions and other factors. It should be noted
that some of these sensitivities are non-linear and larger or smaller impacts
should not be simply interpolated or extrapolated from these results. For
example, the impact from a 5% fall in property prices would be slightly less
than half of that disclosed in the table above.
Other limitations in the above sensitivity analysis include the use of
hypothetical market movements to demonstrate potential risk that only
represents the Group's view of reasonably possible near-term market changes
that cannot be predicted with any certainty.
10. TIER 1 NOTES
31 December 2024 30 June 2024
30 June 2025 £m £m
£m
At start and end of period 322 322 322
On 16 September 2021 the Group issued £325m 5.0% perpetual restricted Tier 1
contingent convertible notes, incurring issue costs of £3m.
During the period, interest of £8m was paid to holders of the Tier 1 notes
(31 December 2024: £16m, 30 June 2024: £8m). The Tier 1 notes bear interest
on the principal amount up to 30 September 2031 (the first reset date) at the
rate of 5.0% per annum, and thereafter at a fixed rate of interest reset on
the first call date and on each fifth anniversary thereafter. Interest is
payable on the Tier 1 notes semi-annually in arrears on 30 March and 30
September each year.
The Group has the option to cancel the coupon payment at its discretion and
cancellation of the coupon payment becomes mandatory upon non-compliance with
the solvency capital requirement or minimum capital requirement or where the
Group has insufficient distributable funds. Cancelled coupon payments do not
accumulate or become payable at a later date and do not constitute a default.
In the event of non-compliance with specific solvency requirements, the
conversion of the Tier 1 notes into ordinary shares could be triggered.
The Tier 1 notes are treated as a separate category within equity and the
coupon payments are recognised outside of the profit after tax result and as a
deduction directly from shareholders' equity. Amounts reported in the
Condensed consolidated statement of changes in equity are £6m (31 December
2024: £12m / 30 June 2024: £6m) after attributable tax.
11. INSURANCE CONTRACTS AND RELATED REINSURANCE
30 June 2025 31 December 2024 30 June 2024
£m £m £m
Gross insurance liabilities 28,933 27,753 24,794
Reinsurance contract assets (2,051) (2,067) (1,108)
Reinsurance contract liabilities 118 94 79
Net reinsurance contracts (1,933) (1,973) (1,029)
Net insurance liabilities 27,000 25,780 23,765
Insurance liabilities and reinsurance assets and liabilities include valuation
of the Best estimate of the present value of future cash flows, the Risk
adjustment for non-financial risk and the Contractual service margin. An
analysis of the movement in insurance liabilities and net reinsurance
contracts is presented below.
Six months ended 30 June 2025 Year ended 31 December 2024
Gross Net reinsurance Net Gross Net reinsurance Net
£m
£m
£m
£m
£m
£m
Net opening balance
Best estimate 23,970 (838) 23,132 20,758 64 20,822
Risk adjustment 1,052 (732) 320 924 (592) 332
CSM 2,731 (403) 2,328 2,449 (490) 1,959
27,753 (1,973) 25,780 24,131 (1,018) 23,113
Movements in best estimate
Contracts initially recognised in the period (238) 63 (175) (728) 208 (520)
Changes in estimates that adjust the CSM 39 (60) (21) 72 2 74
Cash flows 693 30 723 4,294 (1,046) 3,248
Other movements in the best estimate(1) 548 (18) 530 (426) (66) (492)
1,042 15 1,057 3,212 (902) 2,310
Movement in the risk adjustment
Release from risk adjustment for risk expired (3) 2 (1) (11) 4 (7)
Contracts initially recognised in the period 75 (63) 12 290 (232) 58
Changes in estimates that adjust the CSM (2) - (2) 20 (72) (52)
Impact of changes in economic assumptions (17) 20 3 (171) 160 (11)
53 (41) 12 128 (140) (12)
Movement in the CSM
CSM recognised for services provided (100) 13 (87) (177) 23 (154)
Contracts initially recognised in the period 163 - 163 438 24 462
Changes in estimates that adjust the CSM (37) 60 23 (92) 70 (22)
CSM accretion 59 (7) 52 113 (30) 83
85 66 151 282 87 369
Net closing balance
Best estimate 25,012 (823) 24,189 23,970 (838) 23,132
Risk adjustment 1,105 (773) 332 1,052 (732) 320
CSM 2,816 (337) 2,479 2,731 (403) 2,328
28,933 (1,933) 27,000 27,753 (1,973) 25,780
(1 ) Other movements in the best estimate primarily relate to the
impact of changes in economics on the valuation of future cash flows (reported
in note 4 net investment result).
Six months ended 30 June 2024
Gross Net reinsurance Net
£m
£m
£m
Net opening balance
Best estimate 20,758 64 20,822
Risk adjustment 924 (592) 332
CSM 2,449 (490) 1,959
24,131 (1,018) 23,113
Movements in best estimate
Contracts initially recognised in the period (329) 83 (246)
Changes in estimates that adjust the CSM 71 (69) 2
Cash flows 1,105 (74) 1,031
Other movements in the best estimate(1) (339) 16 (323)
508 (44) 464
Movement in the risk adjustment
Release from risk adjustment for risk expired (5) 2 (3)
Contracts initially recognised in the period 93 (73) 20
Changes in estimates that adjust the CSM (2) - (2)
Impact of changes in economic assumptions (66) 46 (20)
20 (25) (5)
Movement in the CSM
CSM recognised for services provided (86) 11 (75)
Contracts initially recognised in the period 236 (10) 226
Changes in estimates that adjust the CSM (69) 69 -
CSM accretion 54 (12) 42
135 58 193
Net closing balance
Best estimate 21,266 20 21,286
Risk adjustment 944 (617) 327
CSM 2,584 (432) 2,152
24,794 (1,029) 23,765
(1 ) Other movements in the best estimate primarily relate to the
impact of changes in economics on the valuation of future cash flows (reported
in note 4 net investment result).
(a) Terms and conditions of insurance and reinsurance contracts
The Group's long-term insurance contracts primarily include Defined Benefit
and Guaranteed Income for Life products.
The Group uses reinsurance as an integral part of its risk and capital
management activities. New business is reinsured via longevity swap and quota
share arrangements. The percentage of new business reinsured over HY25 is:
- GIfL was reinsured using longevity swap reinsurance at 90%
- DB was reinsured using longevity swap reinsurance at c.90% for
future cash flows excluding tax free cash
(b) Measurement of insurance contracts
The methods and estimation techniques used to measure insurance and
reinsurance contracts are unchanged from those disclosed in note 22 of the
Group's 2024 Annual Report and Accounts. In addition, the assumptions for
mortality and expenses used in the valuation of insurance and reinsurance
contracts at 30 June 2025 are consistent with those applied at 31 December
2024.
Set out below are any significant changes in assumptions used in the valuation
of insurance and reinsurance contracts at 30 June 2025, including the
financial assumptions for discount rates which have been updated to reflect
market conditions at 30 June 2025 and the latest calibration of the risk
adjustment for non-financial risk.
Discount rates
Discount rates at the inception of each contract are based on the yields
within a hypothetical reference portfolio of assets which the Group expects to
acquire to back the portfolio of new insurance liabilities (the "target
portfolio"). At each period end, the discount rate is based upon the actual
asset portfolio backing the net of reinsurance best estimate liabilities and
risk adjustment and is adjusted in respect of new contracts incepting in the
period to allow for a period of transition from the actual asset holdings to
the target portfolio where necessary.
All cash flows are discounted using investment yield curves adjusted to allow
for expected and unexpected credit risk. For non-lifetime mortgage assets,
this adjustment is comprised of an element based upon historic default
experience and an element based upon current spread levels where both elements
are relevant to the asset in question. The yields on lifetime mortgage assets
are derived using the assumptions described in note 9 with an additional
reduction to the future house price growth rate of 50bps in all periods
reported. The yields on residential ground rents are derived using the
assumptions described in note 9(e)(iv) in light of the ongoing uncertainty.
The overall reduction in yield to allow for the risk of defaults from all
non-LTM and the adjustment from LTMs, which included a combination of the NNEG
and the additional reduction to future house price growth rate, were 53bps for
JRL (31 December 2024: 56bps / 30 June 2024: 55bps) and 101bps for PLACL (31
December 2024: 96bps / 30 June 2024: 88bps).
The tables below set out rates at certain points on the yield curves used to
discount the best estimate liability and risk adjustment reserves as at each
period end. The discount rates used for the gross insurance and reinsurance
contracts at the period end date are consistent, having been based on a single
investment portfolio for each legal entity. As such only the rates for
underlying business are presented below. Discount rates have been determined
in aggregate and not separately by profitability groupings.
JRL Valuation rate at period end
All products
30 June 2025 31 December 2024 30 June 2024
1 year 5.9% 6.6% 6.9%
5 year 5.7% 6.2% 6.0%
10 year 6.1% 6.2% 5.9%
20 year 6.6% 6.4% 6.0%
30 year 6.6% 6.4% 5.9%
PLACL Valuation rate at period end Valuation rate at period end
GIfL/DB business Care business
30 June 2025 31 December 2024 30 June 2024 30 June 2025 31 December 2024 30 June 2024
1 year 5.9% 6.6% 7.0% 4.3% 5.1% 5.5%
5 year 5.8% 6.2% 6.1% 4.2% 4.6% 4.5%
10 year 6.2% 6.2% 6.0% 4.6% 4.7% 4.4%
20 year 6.7% 6.4% 6.1% 5.1% 4.9% 4.6%
30 year 6.7% 6.4% 6.0% 5.1% 4.8% 4.5%
Inflation and future expenses
Assumptions regarding annuity benefit escalation and maintenance expense
inflation are determined using a methodology consistent with those applied in
the 2024 Annual Report and Accounts and are updated to reflect latest market
conditions at 30 June 2025.
Assumptions for future policy expense levels are determined from the Group's
recent expense analyses and incorporate an annual inflation rate allowance of
3.4% (31 December 2024: 3.7% / 30 June 2024: 3.7%).
Risk adjustment
The best estimate liability represents the present value of future net cash
outflows to settle claims and expenses quantified at the 50th percentile
confidence interval. The risk adjustment for non-financial risk is determined
to reflect the compensation that the Group requires for bearing longevity,
expense, and insurance-contract specific operational risks. The risk
adjustment represents an additional reserve held that increases the ultimate
time horizon confidence interval up to the 70th percentile and amounts to
£0.3bn (31 December 2024: £0.3bn: 30 June 2024: £0.3bn) net of reinsurance.
Based upon the latest risk adjustment calibration exercise, a 5% increase in
the ultimate run-off confidence interval would increase the net of reinsurance
risk adjustment by c£0.1bn in all periods reported.
(c) New insurance contracts issued and reinsurance contracts held
The tables below present the CSM at point of inception of new contracts sold
in the year together with CSM for the related reinsurance:
Six months ended Year ended Six months
30 June 2025 31 December 2024 ended
£m
£m
30 June 2024
£m
Insurance contracts issued
Insurance acquisition cash flows (80) (215) (91)
Estimate of present value of future cash outflows (1,838) (5,466) (2,056)
Estimate of present value of future cash inflows 2,156 6,409 2,476
Estimates of net present value of cash flows 238 728 329
Risk Adjustment (75) (290) (93)
Contractual service margin 163 438 236
The estimate of present value of future cash outflows represents the present
value of claims and maintenance expenses quantified at the discount rates
applicable at date of inception of contracts. The amount recognised in the CSM
represents the value of new business acquired in the period valued based on
point of sale economic and non-economic assumptions.
Six months ended Year ended Six months
30 June 2025 31 December 2024 ended
£m
£m
30 June 2024
£m
Reinsurance contracts ceded
Estimate of present value of future cash outflows (63) (208) (83)
Risk adjustment 63 232 73
Contractual service margin - 24 (10)
(d) Sensitivity analysis
The Group has estimated the impact on fulfilment cash flows, contractual
service margin and profit before tax for the period in relation to insurance
contracts and related reinsurance from reasonably possible changes in key
assumptions relating to financial assets and to liabilities. The sensitivities
capture the liability impacts arising from the impact on the yields of the
assets backing liabilities in each sensitivity. The impact of changes in the
value of assets and liabilities has been shown separately to aid the
comparison with the change in value of assets for the relevant sensitivities
in note 9.
The sensitivity factors are applied via financial models either from a
suitable recent reporting period or as at the valuation date where appropriate
to do so. The analysis has been prepared for a change in each variable with
other assumptions remaining constant. In reality, such an occurrence is
unlikely, due to correlation between the assumptions and other factors. It
should also be noted that these sensitivities are non-linear, and larger or
smaller impacts cannot necessarily be interpolated or extrapolated from these
results. The extent of non-linearity grows as the severity of any sensitivity
is increased.
For example, in the specific scenario of property price falls, the impact on
IFRS profit before tax from a 5% fall in property prices would be slightly
less than half of that disclosed in the table below. Furthermore, in the
specific scenario of a mortality reduction, a smaller fall in fulfilment cash
flows than disclosed in the table below or a similar increase in mortality may
be expected to result in broadly linear impacts. However, it becomes less
appropriate to extrapolate the expected impact for more severe scenarios. The
sensitivity factors take into consideration that the Group's assets and
liabilities are actively managed and may vary at the time that any actual
market movement occurs. The sensitivities below cover the changes on all
assets and liabilities from the given stress. Parameters that have had limited
sensitivity both historically and currently are not included, such as
inflation for which the risk is substantially hedged. The impact of these
sensitivities on IFRS net equity is the impact on profit before tax as set out
in the table below less tax at the current tax rate.
A guide to the sensitivity table is provided below:
Abbreviation Title Impact
FCF Fulfilment cash flows Positive values represent cash inflows or lower cash outflows resulting in
reductions in insurance contract liabilities or an increase in reinsurance
contracts assets.
Negative values represent cash outflows or higher cash outflows resulting in
increased insurance contract liabilities or a decrease in reinsurance
contracts assets.
CSM Contractual service margin Positive values represent a reduction in the CSM
Negative values represent an increase in the CSM
P&L Profit /(loss) before tax Profit - increase in pre-tax profit
(Loss) - decrease in pre-tax profit
Sensitivities can result in an opposite impact on Profit/(loss) before and
after allowance for the CSM due to the impact of the use of locked-in rates
for the CSM.
Impact of sensitivities
30 June 2025 Insurance contract liabilities Reinsurance contracts (net) held Net insurance contract liabilities Valuation of assets Net impact on profit before tax
£m £m £m £m £m
Interest rate and investments + 1% FCF 2,120 (174) 1,946 - -
CSM - - - - -
P&L 2,120 (174) 1,946 (1,950) (4)
Interest rate and investments -1% FCF (2,504) 213 (2,291) - -
CSM - - - - -
P&L (2,504) 213 (2,291) 2,312 21
Decrease in base mortality by 5% FCF (348) 231 (117) - -
CSM 568 (423) 145 - -
P&L 220 (192) 28 (25) 3
Immediate fall of 10% in house prices FCF (48) 4 (44) - -
CSM - - - - -
P&L (48) 4 (44) (76) (120)
Future property price growth reduces by 0.5% FCF (36) 3 (33) - -
CSM - - - - -
P&L (36) 3 (33) (41) (74)
Credit default allowance - increase by 10bps(1) FCF (229) 19 (210) - -
CSM - - - - -
P&L (229) 19 (210) - (210)
31 December 2024 Insurance contract liabilities Reinsurance contracts (net) held Net insurance contract liabilities Valuation of assets Net impact on profit before tax
£m £m £m £m £m
Interest rate and investments + 1% FCF 2,193 (181) 2,012 - -
CSM - - - - -
P&L 2,193 (181) 2,012 (1,993) 19
Interest rate and investments -1% FCF (2,617) 226 (2,391) - -
CSM - - - - -
P&L (2,617) 226 (2,391) 2,367 (24)
Decrease in base mortality by 5% FCF (361) 236 (125) - -
CSM 554 (409) 145 - -
P&L 193 (173) 20 (23) (3)
Immediate fall of 10% in house prices FCF (53) 6 (47) - -
CSM - - - - -
P&L (53) 6 (47) (75) (122)
Future property price growth reduces by 0.5% FCF (40) 4 (36) - -
CSM - - - - -
P&L (40) 4 (36) (40) (76)
Credit default allowance - increase by 10bps(1) FCF (239) 21 (218) - -
CSM - - - - -
P&L (239) 21 (218) - (218)
(1) Over that included in the discount rate section in note 11(b).
12. LOANS AND BORROWINGS
Carrying value Fair Value
30 31 December 2024 30 30 31 December 2024 30
June 2025 £m June 2024 June 2025 £m June 2024
£m
£m
£m
£m
Issued by Just Group plc
£250m 9.0% 10-year subordinated debt 2026 (Tier 2) (£150m principal 152 152 152 159 163 163
outstanding)
£125m 8.125% 10-year subordinated debt 2029 (Tier 2) 124 125 126 137 136 133
£400m 6.875% 10.5-year subordinated debt 2035 non-callable for first 10 years 405 405 - 410 407 -
(Sustainability Tier 2)
£230m 3.5% 7-year subordinated debt (Tier 3) repaid in February 2025 - 157 157 - 156 154
£250m 7.0% 10.5-year subordinated debt (Green Tier 2) repaid in H2 2024 - - 252 - - 256
Total 681 839 687 706 862 706
The Group performed a refinancing exercise which consisted of the issuance in
September 2024 of a £400m 10.5-year sustainability Tier 2 bond with a coupon
of 6.875% and concurrent tender offer of the Group's existing £250m 7.0%
Green Tier 2 bond. On 6 February 2025 the Group repaid the remaining £155m
notional of its Tier 3 bond.
The Group does not expect there to be any breaches to report in the
attestations to be made to bond lenders in March 2026 and there are no
indications that the Group may have difficulties complying with the covenants
over the forthcoming 12 months.
The Group has an undrawn revolving credit facility of £400m for general
corporate and working capital purposes. Interest is payable on any drawn
amounts at a rate of SONIA plus a margin of between 0.81% and 1.94% per annum
depending on the Group's ratio of net debt to net assets and the outcomes of
certain sustainability performance targets. The financial covenants are
measured biannually as at the end of June and December, being the ratio of
consolidated net debt to the sum of net assets and consolidated net debt not
being greater than 45%. The ratio on 30 June 2025 was 21% (31 December 2024:
19% / 30 June 2024: 22%).
13. PAYABLES AND OTHER FINANCIAL LIABILITIES
30 June 2025 31 December 2024 30 June 2024
£m
£m
£m
Derivative financial liabilities 2,951 3,015 2,379
Repurchase obligation 4,030 3,878 3,332
Obligations for repayment of cash collateral received 604 662 690
Outstanding amounts in respect of investment purchases 1 307 80
Other payables 32 20 31
Lease liability 7 7 8
Total 7,625 7,889 6,520
Derivative financial liabilities are classified as mandatorily FVTPL.
Derivatives primarily relate to interest rate, cross currency and inflation
swaps.
Repurchase agreements include £3,743m measured at amortised cost that have
been entered into alongside the amortised cost gilt portfolio, and £287m
newly entered into in H1 2025 measured at fair value transacted to support
pre-funding of investments backing our insurance business.
Obligations to pay cash collateral are measured at amortised cost and there is
no material difference between the fair value and amortised cost of the
instruments.
14. FINANCIAL AND INSURANCE RISK MANAGEMENT
These Condensed consolidated interim financial statements provide an update on
the Group's principal risks at the half year and the outlook for the future
development of those risks in the risk management section. In addition any
significant changes to the Group's exposure to insurance, market, credit and
liquidity risk is included below.
(a) Insurance risk
The Group's insurance risks include exposure to longevity, mortality,
morbidity and expenses. The writing of long-term insurance contracts requires
a range of assumptions to be made. The Group's main insurance risk arises from
adverse experience compared with the assumptions used in pricing products and
valuing insurance liabilities.
The Group continues to manage its exposure to insurance risk through the use
of reinsurance; as explained in note 11(a) new business was reinsured at 90%
for GIfL and c.90% for DB over the period, consistent with the prior year.
(b) Market risk
The Group is exposed to market risk associated with the valuation of future
cash flows derived from investments, insurance liabilities and other balance
sheet items. In addition, the economic environment has a direct effect on the
propensity of potential customers to purchase retirement income products.
(i) Interest rate risk
The Group actively hedges its interest rate exposure to protect balance sheet
positions on both Solvency II and IFRS bases in accordance with its risk
appetite framework and principles. The Group uses its portfolio of amortised
cost gilts as part of managing the Solvency II balance sheet exposure to
interest rate movements, whilst limiting the market risk exposure on the IFRS
balance sheet.
(ii) Property risk
The Group's exposure to property risk arises from the provision of lifetime
mortgages which creates an exposure to the UK residential property market. The
Group is also exposed to commercial property risk indirectly through the
investment in loans secured by commercial mortgages. A sensitivity analysis of
the impact of residential and commercial property price movements is included
in note 9(f) and note 11(d).
(iii) Inflation risk
Exposure to long-term inflation occurs in relation to the Group's own
management expenses and its writing of index-linked Retirement Income
contracts. The Group continues to manage inflation risk through the
application of disciplined cost control over management expenses and matching
inflation-linked assets including inflation swaps, and inflation-linked
liabilities for the long-term inflation risk.
(iv) Currency risk
The Group invests in non-sterling denominated assets; any foreign exchange
exposure is managed through foreign currency swaps in order to minimise this
risk exposure.
(c) Credit risk
Credit risk arises if another party fails to perform its financial obligations
to the Group, including failure to perform them in a timely manner, and is
managed through credit concentration limits and collateral arrangements. The
significant reinsurance collateral arrangements remain unchanged from those
described on note 28(c)(iii) of the 2024 Annual Report and Accounts.
The credit ratings of the Group's investment portfolio are included in the
Additional financial information. The Group continues to actively monitor its
credit exposures and trades investments where appropriate.
(d) Liquidity risk
The Group is exposed to liquidity risk as part of its business model and its
desire to manage its exposure to inflation, interest rates and currency risks
using derivatives. Liquidity risk continues to be managed by holding assets of
a suitable maturity, collateral eligibility and marketability to meet
liabilities as they fall due. The Group's short-term liquidity requirements to
meet annuity payments are predominantly funded by investment asset coupon
receipts, and bond principal repayments. Cash flow forecasts over the short,
medium and long term are regularly prepared to manage liquidity with risk
appetite. Cash flow forecasts include an assessment of the ability to
withstand a range of scenarios including 1-in-200 shocks on the Group's
long-term liquidity and the minimum cash and cash equivalent levels required
to cover enhanced stresses.
The Group has £400m undrawn Revolving Credit Facility for general corporate
and working capital purposes.
15. CAPITAL
(a) Group capital position
The Group's estimated regulatory capital surplus position at 30 June 2025 was
as follows:
30 June 2025 31 December 2024(2)
£m
£m 30 June 2024
£m
Eligible own funds(1) 2,962 3,159 3,040
Capital requirement (1,496)(3) (1,494) (1,552)
Excess own funds 1,466(3) 1,665 1,488
Solvency II Capital coverage ratio 198%(3) 211% 196%
(1) Solvency II capital coverage ratios include a recalculation of TMTP
at the respective dates. Following the implementation of the UK Reforms to
Solvency II on 31 December 2024, TMTP is now recalculated quarterly using the
new simplified method. Firms are no longer required to seek PRA approval for
their recalculations. The 30 June 2024 capital position included a notional
recalculation of TMTP.
(2 ) This is the reported regulatory position as included in the
Group's Solvency and Financial Condition Report as at 31 December 2024. This
excludes the impact from repayment of Tier 3 debt in February 2025, which was
included in the proforma Solvency coverage ratio reported in the Business
Review of 204%.
(3 ) Not covered by PwC's independent review report.
Further information on the Group's Solvency II position, including a
reconciliation from IFRS equity to Eligible own funds, an analysis of the
movement in Excess own funds in the period and also the impact of
sensitivities applied to the Solvency II balance sheet are included in the
Business Review.
The Group and its regulated insurance subsidiaries are required to comply with
the requirements established by the Solvency II Framework directive as adopted
by the Prudential Regulation Authority ("PRA") in the UK, and to measure and
monitor its capital resources on this basis. The overriding objective of the
Solvency II capital framework is to ensure there is sufficient capital within
the Group and its insurance companies to protect policyholders and meet their
payments when due. Firms are required to maintain eligible capital, or "Own
Funds", in excess of the value of their Solvency Capital Requirements ("SCR").
The SCR represents the risk capital required to be set aside to absorb
1-in-200 year stress tests over the next one-year time horizon, allowing for
each risk type that the Group is exposed to, including longevity risk,
property risk, credit risk and interest rate risk. These risks are all
aggregated with appropriate allowance for diversification.
The capital requirement for Just Group plc and its UK insurance subsidiaries
JRL and PLACL are calculated using an approved Internal Model.
The Group's objectives when managing capital are consistent with those
reported in note 30 of the 2024 Annual Report and Accounts.
(b) Regulatory developments
The key regulatory developments are included below.
Life Insurance Stress Test - The PRA is conducting its second Life Insurance
Stress Test ("LIST") exercise in 2025 to assess sector and firm resilience to
severe but plausible adverse scenarios, and to strengthen market understanding
of risk exposures. The Group assessed the impact of a severe economic stress,
as prescribed by the PRA, and provided its results to the PRA at a life
company level in June 2025. The PRA plans to publish sector and firm level
results in Q4 2025. The Group engaged with industry and regulatory discussions
as part of LIST 2025 exercise.
Matching adjustment (SUK) reform - In line with the requirements set out in
PS10/24, the Group implemented required changes at 31 December 2024,
including: Matching Adjustment attestation, removal of the sub-investment
grade cliff in the matching adjustment, and the reflection of rating notches
in the fundamental spread.
Residential ground rents - On 9 November 2023, the previous government
published a consultation seeking views on capping the maximum ground rent that
residential leaseholders can be required to pay. The Group is closely
monitoring developments regarding residential ground rents as described in
note 9(e)(iv), which remains uncertain, and the impact of this on the Group's
£156m (31 December 2024: £157m) portfolio of residential ground rents. Given
the continued uncertainty, there has been no significant change to the
adjustment held against these investments on the Group's Solvency position.
16. CONTINGENT LIABILITIES
The nature of the contingent liabilities of the Group has not changed from
those described in the Group's Annual Report and Accounts for the year ended
31 December 2024.
17. RELATED PARTIES
The nature of the related party transactions of the Group has not changed from
those described in the Group's Annual Report and Accounts for the year ended
31 December 2024.
There were no transactions with related parties during the six months ended 30
June 2025 which have had a material effect on the results or financial
position of the Group.
18. POST BALANCE SHEET EVENTS
On 31 July 2025 the Board announced it had reached agreement with the Board of
Brookfield Wealth Solutions Ltd on the terms of a recommended cash offer to be
made by BWS Holdings Ltd, a wholly owned subsidiary of Brookfield Wealth
Solutions Ltd, to acquire the entire share capital of Just Group plc at a
price of 220 pence per share. BWS Holdings Ltd reserves the right to reduce
the offer price per share by the amount of any dividend paid by Just Group plc
after 31 July 2025, including the interim dividend for 2025 announced today of
0.84 pence per ordinary share. The acquisition, which is subject to the
satisfaction of certain regulatory and competition conditions and shareholder
and regulator approval, is expected to complete during the first half of 2026.
The intention is to combine Just Group plc with Blumont Annuity Company UK, a
wholly owned subsidiary of BWS Holdings Ltd, to operate as a single
consolidated UK insurance group operating under the Just brand by the senior
management of Just Group plc.
The announcement has no impact on the financial statements for the period
ended 30 June 2025.
Subsequent to 30 June 2025, the Directors approved an interim dividend for
2025 of 0.84 pence per ordinary share, which will be paid on 15 September
2025.
Additional financial information
The following additional financial information is not covered by PwC's
independent review report.
FINANCIAL INVESTMENTS CREDIT RATINGS
The sector analysis of the Group's financial investments portfolio by credit
rating is shown below:
Unaudited Total % AAA AA A BBB % of BBB BB or
£m £m £m £m £m below
£m
Basic materials 97 0.3 - 4 22 67 0.9 4
Communications and technology 984 3.5 83 197 140 564 7.9 -
Auto manufacturers 60 0.2 - - 16 44 0.6 -
Consumer staples (including healthcare) 1,330 4.8 130 179 611 391 5.5 19
Consumer cyclical 154 0.6 - 4 48 102 1.4 -
Energy 234 0.8 - 56 4 143 2.0 31
Banks 1,375 4.9 54 156 862 303 4.3 -
Insurance 849 3.0 - 394 122 333 4.7 -
Financial - other 700 2.5 124 88 467 21 0.3 -
Real estate including REITs 564 2.0 30 17 323 173 2.4 21
Government 3,262 11.7 317 2,518 206 221 3.1 -
Industrial 562 2.0 - 103 218 237 3.3 4
Utilities 2,260 8.1 - 66 435 1,759 24.7 -
Commercial mortgages 1,005 3.6 110 555 258 62 0.9 20
Long income real estate(1) 1,794 6.4 156 266 902 470 6.6 -
Infrastructure 3,951 14.2 55 368 1,294 2,234 31.4 -
Other 42 0.2 - - 42 - 0.0 -
Corporate/government bond total 19,223 68.9 1,059 4,971 5,970 7,124 100.0 99
Other assets 869 3.1
Lifetime mortgages 5,912 21.2
Liquidity funds 1,888 6.8
Investments portfolio 27,892 100
Derivatives and collateral 3,594
Gilts (interest rate hedging) 3,972
Total 35,458
1 Includes residential ground rents of £156m rated AAA. Includes
direct long income real estate and where applicable, investment in trusts of
£135m which are primarily included in investments accounted for using the
equity method and investment property in the IFRS Consolidated statement of
financial position.
NEW BUSINESS PROFIT RECONCILIATION
New business profit is deferred on the balance sheet under IFRS 17. In
addition IFRS 17 provides clarification regarding the economic assumptions to
be used at the point of recognition of contracts. Just recognises contracts in
line with that clarification, but bases its assessment of new business
profitability for management purposes on the economic parameters prevailing at
the quote date for GIfl business and market condition date for DB business.
Six months ended Six months ended
30 June 2025 30 June 2024
£m £m
New business CSM on gross business written 163 236
Reinsurance CSM - (10)
Net new business CSM 163 226
Impact of date used for profitability measurement (1) (4)
New business profit 162 222
Glossary
Acquisition costs - comprise directly attributable costs incurred in the
selling, underwriting and commencing of insurance contracts.
Adjusted profit/(loss) before tax - an APM, this is the profit/(loss) before
tax before deferral of profit in CSM.
Alternative performance measure ("APM") - in addition to statutory IFRS
performance measures, the Group has presented a number of non-statutory
alternative performance measures. The Board believes that the APMs used give a
useful insight into the underlying performance of the Group. APMs are
identified in this glossary together with a reference to where the APM has
been reconciled to its nearest statutory IFRS equivalent. APMs regarding our
Solvency position are reconciled to the Solvency II excess own funds. APMs
which are also KPIs are indicated as such.
Buy-in - an exercise enabling a pension scheme to obtain an insurance contract
that pays a guaranteed stream of income sufficient to cover the liabilities of
a group of the scheme's members.
Buy-out - an exercise that wholly transfers the liability for paying member
benefits from the pension scheme to an insurer which then becomes responsible
for paying the members directly.
Care Plan ("CP") - a specialist insurance contract contributing to the costs
of long-term care by paying a guaranteed income to a registered care provider
for the remainder of a person's life.
Cash Generation - a Solvency II APM and one of the Group's KPIs which
represents the movement in Solvency II excess own funds over the year,
generated from in-force surplus, net of Group overheads and management
expenses and debt interest. It excludes new business strain, strategic
expenditure, development costs and other one-off expenses, economic variances,
regulatory adjustments, impact of capital actions and impact of management
actions and other operating items.
Confidence interval - the degree of confidence that the provision for future
cash flows plus the risk adjustment reserve will be adequate to meet the cost
of future payments to annuitants.
Contractual Service Margin ("CSM") - represents deferred profit earned on
insurance products. CSM is recognised in profit or loss within the Condensed
consolidated statement of comprehensive income over the life of the contracts.
CSM amortisation - represents the net release from the CSM reserve into profit
as services are provided. The figures are net of accretion (unwind of
discount), and the release is computed based on the closing CSM reserve
balance for the period.
Deferral of profit in CSM - the total movement on CSM reserve in the year. The
figure represents CSM recognised on new business, accretion of CSM (unwind of
discount), transfers to CSM related to changes to future cash flows at
locked-in economic assumptions, less CSM release in respect of services
provided.
Defined benefit deferred ("DB deferred") business - the part of DB de-risking
transactions that relates to deferred members of a pension scheme. These
members have accrued benefits in the pension scheme but have not yet retired.
Defined benefit de-risking partnering ("DB Partner (funded re)") - a DB
de-risking transaction in which a reinsurer has provided reinsurance in
respect of the asset and liability side risks associated with one of our DB
Buy-in transactions.
Defined benefit ("DB") pension scheme - a pension scheme, usually backed or
sponsored by an employer, that pays members a guaranteed level of retirement
income based on length of membership and earnings.
Defined contribution ("DC") pension scheme - a work-based or personal pension
scheme in which contributions are invested to build up a fund that can be used
by the individual member to obtain retirement benefits.
De-risk - an action carried out by the trustees of a pension scheme with the
aim of transferring risks such as longevity, investment, inflation, from the
sponsoring employer and scheme to a third party such as an insurer.
Development costs - Incurred relating to the generation of incremental value
(extending market reach or share) in future years, from developing existing
products, markets, or new developments to the Group's technology and modelling
capability, and additionally major business transformational projects related
to generating incremental value in future years.
Drawdown (sales or products) - collective term for investment products
including Capped Drawdown.
Earnings per share (basic and diluted) - the calculation of basic and diluted
Earnings Per Share ("EPS") is based on dividing the profit or loss
attributable to ordinary equity holders of the Company by the weighted-average
number of ordinary shares outstanding, and by the diluted weighted-average
number of ordinary shares potentially outstanding at the end of the period.
Employee benefits consultant ("EBC") - an adviser offering specialist
knowledge to employers on the legal, regulatory and practical issues of
rewarding staff, including non-wage compensation such as pensions, health and
life insurance and profit sharing.
Finance costs - Finance costs included within underlying operating profit
include coupons paid on the Group's restricted Tier 1 notes, interest payable
on the Group's Tier 2 and Tier 3 notes, facility non-utilisation fees and debt
repurchase costs when incurred, and amortisation of debt issue and facility
arrangement costs capitalised.
Finance costs included in cash generation include coupons paid on the Group's
restricted Tier 1 notes, interest paid on the Group's Tier 2 and Tier 3 notes,
and all facility costs when incurred. Debt issue and repurchase costs are
excluded from underlying organic capital generation and included within
capital actions when incurred.
Interest paid on repurchase agreements is excluded from the measure of finance
costs within underlying operating profit and cash generation, as these costs
are reported together with the impact of the investment assets funded by
repurchase agreements.
Guaranteed Income for Life ("GIfL") - retirement income products which
transfer investment and longevity risk and provide the retiree with a
guarantee to pay an agreed level of income for as long as the retiree lives.
On a "joint-life" basis, the policy will continue to pay a guaranteed income
to a surviving spouse/partner. Just provides modern individually underwritten
GIfL solutions.
IFRS 17 recognition date - The date on which insurance contracts are
recognised for IFRS 17 reporting purposes: GIfL and Care policies are
recognised on policy completion date, DB contracts are recognised on contract
inception date.
IFRS profit before tax - one of the Group's KPIs, representing the profit
before tax attributable to equity holders.
In-force operating profit - an APM and represents profits from the in-force
portfolio before investment and insurance experience variances, and assumption
changes. It mainly represents expected release of risk adjustment for
non-financial risk and of allowance for credit default in the period, expected
investment returns earned on shareholder assets, together with the value of
the (net of reinsurance) CSM amortisation.
Investment and economic movements - reflect the difference in the period
between expected investment returns, based on investment and economic
assumptions at the start of the period, including the target asset mix for new
business, and the actual returns earned. Investment and economic profits also
reflect the impact of assumption changes in future expected risk-free rates,
corporate bond defaults and house price inflation and volatility.
Key performance indicators ("KPIs") - KPIs are metrics adopted by the Board
which are considered to give an understanding of the Group's underlying
performance drivers. The Group's KPIs are Retirement income sales (shareholder
funded), New business profit, Underlying operating profit, IFRS profit before
tax, Return on equity, Tangible net asset value per share, New business
strain, Cash generation and Solvency II capital coverage ratio.
Lifetime mortgage ("LTM") - an equity release product that allows homeowners
to take out a loan secured on the value of their home, typically with the loan
plus interest repaid when the homeowner has passed away or moved into
long-term care.
LTM notes - structured assets issued by wholly owned special purpose entities,
Just Re1 Ltd and PLACL Re1 Ltd. These entities hold pools of lifetime
mortgages, each of which provides the collateral for issuance of senior and
mezzanine notes to Just Retirement Ltd and Partnership Life Assurance Company
Ltd, eligible for inclusion in their matching portfolios.
Market conditions date - the date used as a reference point for market and
economic conditions to determine the quotation premium.
Medical underwriting - the process of evaluating an individual's current
health, medical history and lifestyle factors, such as smoking, when pricing
an insurance contract.
Net asset value ("NAV") - an APM that represents IFRS total equity, net of
tax, and excluding equity attributable to Tier 1 noteholders.
New business margin - an APM that is calculated by dividing new business
profit by Retirement income sales (shareholder funded). It provides a measure
of the profitability of shareholder funded Retirement income sales.
New business profit - an APM and one of the Group's KPIs, representing the
profit generated from new business written after allowing for the
establishment of reserves for future expected cash flows, risk adjustment and
incorporate expected investment returns on the target asset mix of investments
to back that business plus an allowance for acquisition expenses and
incremental marginal costs including overheads that are attributable to new
business. The net underlying CSM increase from new business is added back as
the Board considers the value of new business is significant in assessing
performance. New business profit is reconciled to IFRS profit before tax in
the Business Review.
New business strain - an APM and one of the Group's KPIs, representing the
capital strain on new business written in the year after allowing for
acquisition expense allowances and the establishment of Solvency II technical
provisions and Solvency Capital Requirement.
No-negative equity guarantee ("NNEG") hedge - a derivative instrument designed
to mitigate the impact of changes in property growth rates on both the
regulatory and IFRS balance sheets arising from the guarantees on lifetime
mortgages provided by the Group which restrict the repayment amounts to the
net sales proceeds of the property on which the loan is secured.
Operating experience and assumption changes - represents changes to cash flows
in the current and future periods valued based on end-of-period economic
assumptions. This is reported prior to the deferral of profit in CSM from
changes to future cash flows.
Organic capital generation - an APM that is calculated in the same way as cash
generation, plus the impact of new business strain, development costs and
other one-off expenses and management actions and other items.
Other Group companies' operating results - the results of Group companies
including our HUB group of companies, which provides regulated advice and
intermediary services, and professional services to corporates, and corporate
costs incurred by Group holding companies.
Pension Freedoms/Pension Freedom and Choice/Pension Reforms - the UK
Government's pension reforms, implemented in April 2015.
Peppercorn rent - a very low or nominal rent.
PrognoSys™ - the Group's proprietary underwriting engine, which is based on
individual mortality curves derived from Just Group's own data collected since
its launch in 2004.
Regulated financial advice - personalised financial advice for retail
customers by qualified advisers who are regulated by the Financial Conduct
Authority.
REITs - a Real Estate Investment Trust is a company that owns, operates, or
finances income-generating real estate.
Retail - the Group's collective term for GIfL and Care Plan.
Retirement income sales (shareholder funded) - an APM and one of the Group's
KPIs and a collective term for GIfL, DB and Care Plan new business sales
"Sales" and excludes DB partnering premium. Premiums are reported gross of
commission paid. Retirement income sales (shareholder funded) are reconciled
in note 2 to premiums included in the analysis of movement in insurance
liabilities within note 11.
Return on equity - an APM and one of the Group's KPIs. Return on equity is
calculated by dividing underlying operating profit after attributed tax for
the period by the average tangible net asset value for the period and is
expressed as an annualised percentage. Underlying operating profit and
tangible net asset value are reconciled respectively to IFRS profit before tax
and IFRS total equity in the Business Review.
Risk adjustment for non-financial risk ("RA") - allowance for longevity,
expense, and insurance specific operational risks representing the
compensation required by the business when managing existing and pricing new
business.
Secure Lifetime Income ("SLI") - a tax efficient solution for individuals who
want the security of knowing they will receive a guaranteed income for life
and the flexibility to make changes in the early years of the plan.
Solvency II - Sets out regulatory requirements for insurance firms and groups,
covering financial resources, governance and accountability, risk assessment
and management, supervision, reporting and public disclosure.
Solvency UK - Covers the reforms to the Solvency II requirements for the UK
and implemented by the PRA.
Strategic expenditure - Are costs that deliver major regulatory change, the
implementation of major strategic investment, new product and business lines
and other restructuring costs.
Tangible net asset value ("TNAV") - an APM that comprises IFRS total equity
attributable to ordinary shareholders, excluding goodwill and other intangible
assets, and after adding back contractual service margin, net of tax.
Tangible net asset value per share - an APM and one of the Group's KPIs,
representing tangible net asset value divided by the closing number of issued
ordinary shares excluding shares held in trust.
Trustees - individuals with the legal powers to hold, control and administer
the property of a trust such as a pension scheme for the purposes specified in
the trust deed. Pension scheme trustees are obliged to act in the best
interests of the scheme's members.
Underlying earnings per share - an APM that is calculated by dividing
underlying operating profit after attributed tax by the weighted average
number of shares in issue by the Group for the period.
Underlying operating profit - an APM and one of the Group's KPIs representing
new business profit, in-force operating profit, other Group companies'
operating results, development costs and other, and finance costs.
Underlying operating profit represents new business profit and profits from in
force business excluding operating assumption changes and experience
variances. The Board believes the combination of both future profit generated
from new business written together with the profit from the in-force book of
business, provides a view of the development of the Group aligned to growth
and future cash release.
Variances between actual and expected investment returns due to temporary
economic and market changes, including on surplus assets and on assets assumed
to back new business, and, are reported outside underlying operating profit.
Furthermore, underlying operating profit excludes strategic expenditure,
amortisation of intangible assets arising on consolidation, and any
impairments since these items arise outside the normal course of business.
Underlying operating profit is reconciled to IFRS profit before tax in the
Business Review.
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. END IR SSASSWEISEDARecent news on Just
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