REG - Just Group plc - Results for the year ended 31 December 2025
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RNS Number : 6167U Just Group PLC 27 February 2026
NEWS RELEASE www.justgroupplc.co.uk (https://www.justgroupplc.co.uk)
27 February 2026
JUST GROUP PLC
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025
CHANGE, GROWTH, OPPORTUNITY
Just Group plc (the "Group", "Just") announces its results for the year ended
31 December 2025.
David Richardson, Group Chief Executive Officer, said:
"The proposed combination with Brookfield Wealth Solutions Ltd ("BWS") will be
a great outcome for customers, shareholders and our colleagues. It reflects
the strength of the Just platform and the long-term value of the strategy we
have developed. We look forward to building on our successful growth strategy
and strong culture, as we enter this exciting next phase for Just.
During 2025, our proactive approach to managing our capital resources, pricing
discipline and risk selection meant that we deliberately reduced volume in
what was an increasingly competitive Defined Benefit de-risking ("DB") market.
Industry analysts expect a rebound in the DB market in 2026, driven by renewed
demand from sponsors and trustees, and our own pipeline supports this outlook.
In addition, the retail guaranteed income market offers significant long-term
growth potential in the decades ahead.
As previously communicated, we expect the acquisition of Just by BWS to
complete during the first half of 2026."
Demonstrating strategic execution and pricing discipline
· Underlying operating profit(1) down 39% to £305m (2024: £504m),
driven by lower new business margins on lower sales, partially offset by
higher recurring in-force profit.
· Retirement Income sales(1) down 18% to £4.3bn (2024: £5.3bn), with
strong growth in Guaranteed Income for Life ("GIfL") partially offsetting a
fall in DB sales.
· Strong strategic execution as GIfL(2) new business sales rose 23% to
£1.3bn, reflecting improvements to our advisor proposition. The DB business
completed a single year industry record 130 transactions, but wrote fewer
medium sized transactions (5) compared to 2024 (9). Reflecting this, DB new
business sales fell 28% to £3.1bn in a market that fell to c.£40bn in 2025
(source: LCP, 2024: £48bn).
· Market opportunity unchanged: The DB market is expected to rebound in
2026, with predictions of £40-55bn of volume (source: LCP), following
publication of the Pension Schemes Bill in June 2025, and a strong pipeline of
£1bn+ transactions. The UK GIfL market took a further step higher to £7.4bn,
as advisors increasingly incorporate guaranteed income into retirement
planning, with enormous potential ahead due to long term structural growth
drivers.
· New business margins were lower at 5.7% (FY 24: 8.7%), due to a
combination of increased competition, in particular DB during H2 25, tighter
spreads, lower volumes and business mix.
Solvency II performance
· Capital coverage ratio of 179%(3) (31 December 2024 proforma:
204%(3)), with the fall driven by new business growth, and non-operating
items, including the tactical decision to accumulate gilts, which will reverse
as the excess holding is recycled into corporate credit and illiquid assets as
opportunities arise.
· New business strain(1) at 2.7% (2024: 1.3%) was just above our target
of below 2.5% of premium. Increased competition, particularly in the second
half of 2025, impacted our ability to raise pricing to offset the prevailing
credit spread environment, and we chose to constrain volumes. Our disciplined
approach to new business pricing means that we consistently write business at
or above our target mid-teen IRR on shareholder capital invested.
· Cash generation before new business capital strain has increased by
9% to £130m (2024: £119m).
IFRS performance
· Tangible net assets increased to £2.7bn from £2.6bn, giving 37%
growth over the last 3 years.
· Adjusted profit before tax(1) was £120m (2024: £482m) due to lower
underlying profit, strategic costs and investment and economic losses. Of this
£120m Adjusted profit before tax, £238m of profit is deferred to the CSM(4)
, leaving an IFRS loss before tax of £(118)m (2024 profit: £113m).
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 GIfL includes UK GIfL, South Africa GIfL, and Care Plans
3 Solvency capital coverage ratios as at 31 December 2025
(estimated) 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.
4 Contractual Service Margin.
Enquiries
Investors / Analysts Media
Alistair Smith, Investor Relations Lucy Grubb, Head of External Communications
Telephone: +44 (0) 1737 232 792 Telephone: +44 (0) 1737 308 783
alistair.smith@wearejust.co.uk (mailto:alistair.smith@wearejust.co.uk) press.office@wearejust.co.uk (mailto: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 (mailto:paul.kelly@wearejust.co.uk) Telephone: +44 (0) 20 7183 1190
just@templebaradvisory.com (mailto: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
(http://www.justgroupplc.co.uk/) .
Click on, or paste the following link into your web browser, to view a PDF of
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Click on, or paste the following link into your web browser, to view the
Annual Report and Accounts for the year ending 31 December 2025:
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The Results will be available shortly on the Just Group website at
https://www.justgroupplc.co.uk/investors/results-reports-and-presentations
(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.
(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 Annual report 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 Annual Report involve
uncertainty, since future events and circumstances can cause results and
developments to differ materially from those anticipated. This Annual Report
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.
On 31 July 2025, the boards of directors of Brookfield Wealth Solutions Ltd
("BWS") and Just Group plc ("Just") announced that they had reached agreement
on the terms of a recommended cash offer to be made by BWS Holdings Limited
("Bidco"), a wholly owned subsidiary of BWS, to acquire the entire issued and
to be issued share capital of Just (the "Acquisition"), to be implemented by
way of a court-sanctioned scheme of arrangement under Part 26 of the Companies
Act (the "Scheme"). As previously communicated, the Acquisition is expected to
complete during the first half of 2026.
The forward-looking statements are currently only as at the date of this
document and reflect knowledge and information available at the date of
preparation of this Annual Report. 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 Annual Report 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 Annual Report may
not be indicative, and are not an estimate, forecast or projection of, the
Group's future results. Nothing in this Annual Report should be construed as a
profit forecast.
Chief Executive Officer's statement
Confident future outlook
"As we enter a new chapter under new ownership, we do so with optimism,
continuity of purpose, and a clear ambition for the future."
This has been a momentous year for Just Group.
The proposed combination with Brookfield Wealth Solutions Limited ("BWS") is a
fantastic outcome for customers, shareholders and our colleagues. It reflects
the strength of the Just platform and the long-term value of the strategy we
have developed. BWS and the wider Brookfield scale, investment expertise and
alignment with our purpose will enable Just to broaden its reach and enhance
its offering.
Increasingly competitive markets in 2025, particularly in DB, led to an 18%
fall in shareholder funded sales to £4.3bn, which has delivered underlying
operating profit for the year of £305m, down 39%. Our disciplined approach to
new business pricing means that we consistently write business at or above our
target mid-teen IRR on shareholder capital invested in new business, which in
2025 came at the expense of volumes. Both our DB and Retail business units are
benefitting from long-term structural trends, and we are committed to
compounding the growth in value of the Group over the long term. During 2025,
the Group's tangible net asset value increased to £2.7bn.
Defined Benefit De-Risking
I am extremely pleased with the strategic execution of our DB business, which
has had another industry record year. We completed 130 transactions (2024: 129
transactions), which delivered £3.1bn of new business, making Just the number
one DB provider by deal number. Over the past four years, we have completed
more than 300 transactions via our proprietary platform, Beacon. We priced
multiple large DB schemes, but pricing was unusually competitive in the
context of the prevailing credit spread environment. This dynamic lead to our
DB business completing five transactions above £100m in 2025 (largest £270m)
compared to nine transactions above £100m in 2024 (largest £1.8bn).
We expect an increased DB market opportunity in 2026, following the fall in
the market in 2025 to c.£40bn. The reduction was due to fewer large
transactions, which we believe was a consequence of market uncertainty during
the first half of the year ahead of the publication of the Pension Schemes
Bill in June. Otherwise the market was busy in 2025 and overall activity
continues to increase with c.350 transactions completed, a new record (source:
LCP, 2024: 300 transactions).
Guaranteed Income for Life
Our Retail business had a very encouraging year as sales were up 23% to
£1.3bn, with excellent traction in the second half due to our improved
advisor proposition, reflecting ongoing development expenditure. Market demand
has remained strong and took a small step up to £7.4bn in 2025 (source ABI,
2024: £7.0bn), which represents a more than doubling since 2022. We utilise
proprietary medical underwriting to risk select the most profitable parts of
the market. Guaranteed income has enormous long-term growth potential due to
the steady growth of defined contribution savings and increasing willingness
of advisors to utilise guaranteed income solutions.
Alignment of purpose with our investments capability
The tighter credit spreads available in public markets during 2025 meant our
successful illiquid asset origination strategy was more important than ever.
We sourced £2.2bn of illiquid investments during 2025 at attractive spreads
above equivalent public assets, with two thirds of this total sourced
internally. We remain committed to continuing to invest in assets that support
a positive impact, with recent investments taking advantage of strong market
momentum for green buildings, energy-efficient properties and infrastructure.
Financial performance, underlying operating profit down 39%
In 2025, underlying operating profit was down 39% to £305m, driven by a
reduction in new business margin on lower sales, partially offset by higher
recurring in-force profit. New business margin was impacted by a combination
of tighter credit spreads, the effect of increased competition on pricing,
lower volumes, and business mix. We incurred strategic costs as we continued
to invest in new proposition development, and reported non-operating
investment and economic losses, which when combined with other items resulted
in an adjusted profit before tax of £120m for 2025 (2024: £482m). After
allowing for deferral of profit into the CSM balance sheet reserve, the IFRS
loss before tax was £(118)m (2024: £113m profit).
Our purpose and our customers
We help people achieve a better later life, this is our purpose, it's 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 help more people across the wider
retirement markets. During the year, we acquired two smaller businesses, which
add capability and accelerate our participation in the "approaching
retirement" segment.
Sustainability
We are committed to a sustainable strategy that protects our communities and
the planet we live on. We are proud to have achieved our first net zero
target: net zero by 2025 in our own operations (Scope 1 and 2 emissions).
Our Scope 3 emissions, which are principally comprised of carbon emissions,
are largely driven by our investments (credit portfolio and lifetime
mortgages). Our target is to reduce our applicable Scope 3 carbon emissions by
50% by 2030. We have made strong progress - achieving a 46% reduction in our
investment portfolio financed emissions intensity by the end of 2025 relative
to our 2019 baseline. Within this, we have delivered a 57% reduction in our
credit portfolio financed emissions intensity.
Our people
As we look forward to the new opportunities created by our change in
ownership, we will be harnessing 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 hard work and
dedication - it's always a team effort and our people make Just a brilliant
place to work.
In conclusion
Over the last five years, we have doubled our sales and established Just as a
leader in our chosen markets. These markets present multiple opportunities and
structural growth for many years to come.
I am really proud of what the Just team has accomplished and personally
grateful for the valuable support our shareholders have shown us since I
became CEO in 2019. We look forward to working with our new owners, BWS, and
building on our successful growth strategy and strong culture as we enter this
exciting new phase for Just.
David Richardson
Group Chief Executive Officer
Business Review
Building long term value
"During 2025, we proactively managed our capital resources and constrained
volumes. Long term growth drivers remain intact, and we are well positioned."
We price with discipline, risk select and innovate, ensuring our business
model delivers long-term value for customers and shareholders. The Business
Review presents the results of the Group for the year ended 31 December 2025,
including IFRS and Solvency II ("SII") information.
The 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,
while remaining disciplined in how and when we invest. We continue to target
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
During 2025, we delivered Retirement Income (shareholder funded) new business
sales of £4.3bn (2024: £5.3bn), as strong growth in GIfL partially offset a
fall in DB de-risking sales. We took a proactive approach to manage our
capital resources, and in a very competitive market for DB, especially in the
second half of the year, we chose to constrain sales volume. Instead, we
maximised our leadership position in the <£100m small scheme transaction
segment, and wrote 125 deals, the majority of which were originated via
Beacon, our proprietary price monitoring service. These smaller transactions
were augmented by a further five medium sized transactions, for a total of 130
transactions during the year (2024: 129 transactions). These activity levels
represent c.40% of all transactions in the market over the past two years and
demonstrate our operational excellence and strategic execution.
Following the completion of Just's largest transaction to date, a £1.8bn deal
with the G4S pension scheme in November 2024, we priced multiple large DB
schemes (£1bn+), however, pricing was very competitive in the context of the
prevailing credit spread environment. There were also fewer and lower average
case sizes for medium transactions (£100m-£1bn) available in the market. In
2025, Just's activity translated into an 8% share by value of a c.£40bn DB
market (source: LCP) that was split c.1/4 in the first half and c.3/4 in the
second half (source: Just analysis). We believe that the fall in the market
and increased seasonality was a consequence of market uncertainty during the
first half of the year ahead of the publication of the Pension Schemes Bill in
June. During 2025, DB new business was down 28% to £3.1bn (2024: £4.3bn). We
expect an increased DB market opportunity in 2026, with the strong tailwind of
H2 25 and competitive pricing encouraging schemes of all sizes to come to
market as corporates choose to offload legacy and complex DB pension risk to
insurers.
Our Retail business had a strong 2025, as customers continue to benefit from
higher and more normalised long-term interest rates, which directly increase
the GIfL rate on offer. Just's sales grew ahead of the market due to our
improved advisor proposition, which reflects ongoing development expenditure.
We continue to maintain strong pricing discipline in a market that has
enormous long-term growth potential due to the steady growth of defined
contribution pension pots and advisors increasing willingness to utilise
guaranteed retirement income solutions. During 2025, we wrote £1.3bn of
GIfL/Care new business, up 23% year on year (2024: £1.0bn).
Profit
In 2025, underlying operating profit was £305m (2024: £504m), down 39% year
on year.
The £4.3bn of Retirement Income sales (shareholder funded) generated a new
business profit of £249m, down 46% (2024: £460m), translating to a new
business margin of 5.7% (2024: 8.7%). New business margin was impacted by the
increase in competition, which hampered our ability to reprice and offset the
trend of tighter credit spreads as the year progressed, 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 our recurring in-force operating profit, up
4% to £246m (2024: £236m). Finance costs were broadly stable at £71m, and
we invested £36m (2024: £35m) in development expenditure regarding new
systems and processes to scale the business efficiently for the future.
After non-operating items, we recorded an adjusted profit before tax of £120m
(2024: £482m). After allowing for the deferral of profit into the CSM balance
sheet reserve, the IFRS loss before tax is £(118)m (2024: £113m IFRS profit
before tax).
Increasing shareholder value
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 257p per share (31
December 2024: 254p per share), on which we earned an 8.6% return (2024:
15.3%). The internal rate of return ("IRR") on shareholder capital invested in
new business remains above our "mid-teen" target, as available capital is
tactically allocated to exploit the opportunities available - both today and
in the future.
Capital
The Group's estimated Solvency II capital coverage ratio remains robust at
179% (31 December 2024: 204%(3)), driven lower by investment in new business
and non-operating items. Cash generation was up 9% to £130m (2024: £119m),
due to our growing in-force book of business from the high volumes of
profitable business written in prior years, and the release of capital and
risk allowances as we pay our existing customers. Organic capital consumption
at £(30)m (2024: £81m organic capital generation) swung to a negative driven
by the increase in new business strain to £116m (2.7% of new business
premium), and the £(17)m net impact of other operating items. This compares
to £71m of new business strain (1.3% of new business premium) and £58m of
positive management actions in 2024. The 2025 new business strain represents a
satisfactory result in the difficult market conditions. It was above our
target of less than 2.5% of premium, and compares to the average of 1.7% of
premium since 2020. Our through the cycle new business strain reflects a
strong pricing discipline, focused risk selection and our ability to originate
increasing quantities of high-quality illiquid assets. Non-operating items
summed to a £(322)m reduction in surplus, which led to a 15% fall in the
capital coverage ratio. This included the £28m shareholder dividend paid
during 2025, £(66)m from the effect of rising long term interest rates,
£(43)m from property growth experience, and asset trading timing and other
economic variances of £(112)m. We also incurred £(73)m of strategic
expenses, driven higher by our BWS offer transaction costs and a bolt-on
acquisition. 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.
Outlook
The normalisation of long-term interest rates and the attractiveness of the
guarantees embedded in our products continue to drive demand from our
customers. Our markets are large, with huge untapped potential. The proposed
combination with BWS will enable us to capture both the nearer term DB
de-risking opportunity through an enlarged balance sheet, while also enhancing
our ability to capitalise on evolving retirement trends, including the growing
opportunities in defined contribution pensions. Through accessing Brookfield
Asset Management's industry leading investment expertise, we will be able to
continue to deliver competitively priced products and services to our
customers. Our culture, reputation and capabilities, including investment in
our people enable us to continue to strongly execute as we take advantage of
the multiple growth opportunities in our chosen markets.
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:
2025 2024 Change
Retirement Income sales(1) £4,341m £5,308m (18)%
New business profit(1) £249m £460m (46)%
Underlying operating profit(1) £305m £504m (39)%
IFRS (loss)/profit before tax £(118)m £113m n/a
Return on equity(1) 8.6% 15.3% (6.7)pp
Tangible net asset value per share(1) 257p 254p 3p
New business strain(1) (as % of premium) 2.7% 1.3% 1.4pp
Cash generation(1) £130m £119m 9%
Solvency II capital coverage ratio(2,3) 179% 204% (25)pp
1 Alternative performance measure, see glossary for definition.
2 Solvency capital coverage ratios as at 31 December 2025
(estimated) and 31 December 2024 include a recalculation of TMTP at the
respective dates.
3 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 year to 31 December 2025 was 8.6% (2024: 15.3%),
based on underlying operating profit after attributed tax of £229m (2024:
£378m) arising on average adjusted tangible net assets of £2,652m (2024:
£2,475m). Tangible net assets are reconciled to IFRS total equity as follows:
31 December 2025 31 December 2024
£m £m
IFRS total equity attributable to ordinary shareholders 788 924
Less intangible assets (47) (40)
Tax on amortised intangible assets 1 1
Add back contractual service margin 2,566 2,328
Adjust for tax on contractual service margin (639) (578)
Tangible net assets 2,669 2,635
Tangible net assets per share 257p 254p
Return on equity % (underlying) 8.6% 15.3%
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.
2025 underlying operating profit reduced by 39% to £305m (2024: £504m), due
to lower new business volumes and margins as we faced increased competition
and tighter credit spreads. Our pricing discipline led to our decision to
constrain volume appetite and stay within our available capital budget.
Recurring in-force operating profit rose by 4% to £246m, with other group
companies' costs and development costs and other broadly stable. Finance costs
rose by 3% to £71m (2024: £69m), following a bond refinancing in September
2024.
We expect an increased DB market opportunity in 2026, after the market fell to
c.£40bn (2024: £48bn) due to fewer £1bn+ transactions. Our confidence is
due to the c.£30bn DB market H2 25 run-rate and large deal pipeline. However,
we will maintain our pricing discipline and continue to pivot volumes between
different segments of the DB and GIfL markets we operate in, so that we
continue to earn an appropriate return on capital deployed in new business.
Year ended 31 December 2025 Year ended 31 December 2024 Change
£m £m %
New business profit 249 460 (46)
CSM amortisation (67) (71) (6)
Net underlying CSM increase 182 389 (53)
In-force operating profit 246 236 4
Other Group companies' operating results (16) (17) (6)
Development costs and other (36) (35) 3
Finance costs (71) (69) 3
Underlying operating profit(1) 305 504 (39)
1 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 22.0 pence (2024: 36.3 pence).
Year ended 31 December 2025 Year ended
31 December
2024
Underlying operating profit (£m) 305 504
Attributable tax (£m) (76) (126)
Underlying operating profit after attributable tax (£m) 229 378
Weighted average number of shares (million) 1,042 1,040
Underlying EPS(1) (pence) 22.0 36.3
1 Alternative performance measure, see glossary for definition.
Earnings per share
Earnings per share (based on net profit after tax) has decreased to (10.7)
pence (2024: 6.5 pence). This includes any operating experience and assumption
changes, the non-operating items and deferral of profit to the CSM reserve,
and reflects the IFRS 17 statutory profit.
Year ended Year ended
31 December 31 December
2025 2024
(Loss)/Profit before tax (£m) (118) 113
Tax (£m) 19 (33)
(Loss)/Profit attributable to equity holders of Just Group plc (£m) (99) 80
Coupon payments in respect of Tier 1 notes (net of tax) (£m) (12) (12)
Earnings (£m) (111) 68
Weighted average number of shares (million) 1,042 1,040
EPS (pence) (10.7) 6.5
New business profit
New business profit fell 46% to £249m (2024: £460m) driven by an 18%
reduction in shareholder funded Retirement Income sales to £4.3bn (2024:
£5.3bn) and lower margins. In a more competitive DB market, we constrained
volumes and instead took advantage of our leadership position in the defined
benefit de-risking small scheme segment, where we could earn a better margin.
We also faced into progressively tighter credit markets during the year, and
chose to minimise public credit investments, instead investing in illiquid
assets and gilts. These headwinds were partially offset by a focus on pricing
discipline, business mix and risk selection. As a result of these factors, new
business margin decreased to 5.7% (2024: 8.7%).
Movement In CSM
The total movement in CSM represents the net underlying increase of profit
deferral in CSM during the year before any transfers to CSM in respect of
operating experience and assumption changes recognised in the current year.
The new business profit of £249m deferred in CSM is well in excess of the CSM
in-force release (£174m). 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). £67m of net CSM amortisation (2024: £71m) is a £174m release
of CSM into profit, offset by £107m of interest accreted to the CSM. The
£174m CSM release into profit (2024: £154m) represents 6.4% (2024: 6.2%) of
the CSM balance immediately prior to release.
Accretion at locked in rates on the CSM balance was £107m (2024: £83m),
adding 4.1% (2024: 3.4%) 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.
Year ended Year ended Change
31 December 31 December 2024 %
2025 £m
£m
Investment return earned on surplus assets 146 133 10
Release of allowances for credit default 33 29 14
CSM amortisation 67 71 (6)
Release of risk adjustment for non-financial risk/Other - 3 n/a
In-force operating profit 246 236 4
The in-force operating profit increased by 4% to £246m (2024: £236m), driven
by an increase in investment return, as a result of a greater amount of
surplus assets, which reflects our larger balance sheet. 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. CSM
amortisation fell due to a one-off adjustment, but ought to increase over time
as the stock of CSM reserve grows. The CSM release is offset by a higher
accretion rate as noted earlier.
Other Group companies' operating results
The operating result for Other Group companies was a loss of £16m (2024: loss
of £17m). These costs include the net cost of corporate and proposition
related initiatives in the HUB group of businesses and the Group's holding
companies, including plc costs.
Development costs and other
Development costs and other include development costs of £28m (2024: £25m)
and £8m of other items (2024: £10m). 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 up 3% at £71m (2024: £69m), with the increase reflecting
the higher coupon payable on a portion of the Group's debt following a
refinancing in September 2024. Finance 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 (repaid on maturity in February 2025).
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
Year ended 31 December 2025 Year ended 31 December 2024 Change
£m £m %
Defined Benefit De-risking Solutions ("DB")(1) 3,071 4,275 (28)
Guaranteed Income for Life Solutions ("GIfL")(2) 1,270 1,033 23
Retirement Income sales (shareholder funded) 4,341 5,308 (18)
DB Partner (funded reinsurance)(1) - 1,101 n/a
Total Retirement Income sales 4,341 6,409 (32)
1 Adding the DB shareholder funded and Partner business leads to
total DB de-risking sales volumes of £3,071m (2024: £5,376m).
2 GIfL includes UK GIfL, South Africa GIfL and Care Plans.
Despite a more challenging year in 2025, as increased competition and tighter
credit markets impacted pricing, our confidence that we can continue to
deliver attractive returns and growth rates over the long-term is underpinned
by the structural drivers and trends in our 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, larger pension pot sizes due to investment performance 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 present higher
and more normalised long term interest rates, this increases the value of the
guarantee to customers, making the product more attractive relative to other
forms of retirement income.
Shareholder funded DB sales at £3.1bn (2024: £4.3bn) were down 28%,
reflecting the decision to maintain pricing discipline by constraining
volumes, particularly in the very competitive second half of 2025. Our
proprietary bulk quotation and price monitoring service, ("Beacon"), continues
to grow in popularity with over 400 DB schemes onboarded. From an execution
perspective, we completed 130 transactions (2024: 129 transactions), which
represents c.40% of all transactions in the market over the past two years
(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. In 2025, we maintained our leadership position in the
<£100m transaction size segment, writing £2.0bn of business across 125
transactions (2024: £1.8bn across 120 transactions) with a further £1.1bn
from the £100m-£1bn medium size segment across five transactions (2024:
£2.4bn across nine transactions). Just's activity translated into an 8% share
by value of a c.£40bn DB market (source: LCP) that was split c.1/4 in the
first half and c.3/4 in the second half (source: Just analysis). We believe
that the fall in the market and increased seasonality was a consequence of
market uncertainty during the first half of the year ahead of the publication
of the Pension Schemes Bill in June 2025, with fewer £1bn+ schemes
transacting. This had a knock-on effect, leading to fewer and lower average
case sizes for medium transactions. Despite this, the industry responded with
a record amount of activity with c.350 transactions (source: LCP, 2024: 300
transactions) completed in 2025, driven by smaller deals.
Following clarity from the Pension Schemes Bill, and continued high funding
levels, there are now increased opportunities available. Given the strong
industry pipeline, 2026 is forecast to potentially be a record year with up to
£55bn of transactions (source: LCP, 5th January 2026). In November 2025, LCP
renewed their forecasts, and estimate that £350-550bn of DB buy-in/buyout
deals could transact over the decade from 2025-2034. This demonstrates the
scale and opportunity available from the £1.1tn of DB liabilities
outstanding, of which c.22% have transferred to insurers to date. 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.
GIfL sales were up 23% to £1.3bn (2024: £1.0bn). We performed ahead of
market growth due to our improved advisor proposition reflecting ongoing
development and transformation expenditure. The GIfL market has experienced
very strong growth in 2023/24. In 2025, the UK GIfL market consolidated,
growing 4% to £7.4bn.
We expect continued 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"). Changing adviser behaviour, technology tools
and consolidation into larger advice networks are driving new trends in
distribution, as advisers respond to the changing needs of their customers as
they decumulate in the spending phase of retirement. Due to the higher
customer rates on offer, and regulatory initiatives including the FCA's
Consumer Duty and findings from the thematic review into retirement income
advice, advisors and their customers are re-examining the importance of
guaranteed solutions to help customers achieve their retirement 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 (loss)/profit before tax
Year ended Year ended
31 December 31 December
2025 2024
£m £m
Underlying operating profit(1) 305 504
Operating experience and assumption changes (32) (37)
Investment and economic movements (98) 18
Strategic expenditure (71) (23)
Adjustment for transactions reported directly in equity in IFRS 16 20
Adjusted profit before tax(1) 120 482
Deferral of profit in CSM (238) (369)
(Loss)/Profit before tax (118) 113
1 Alternative performance measure, see glossary for definition.
Operating experience and assumption changes
Negative operating experiences were driven by lower than expected mortality,
£(20)m. It also includes £(6)m due to modelling updates and £(6)m from
minor assumptions strengthening.
Investment and economic movements
Year ended Year ended
31 December 31 December
2025 2024
£m £m
Change in risk free rates and inflation 12 3
Property growth experience (55) (22)
Other (55) 37
Investment and economic movements (98) 18
Investment and economic movements were negative at £(98)m (2024: £18m
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).
LTM portfolio property growth was slightly negative, thereby performing below
the 3.3% annual long-term property growth assumption (2024: 3.3% annual
property growth assumption), resulting in a negative variance. Other includes
a strengthening of the lifetime mortgage voluntary redemptions assumption,
partially offset by a number of positive assumption changes in relation to
inflation and credit defaults. It also includes the effect of asset trading,
economic assumption updates, and other one-off negative investment variances.
1 With a 100 bps increase in interest rates resulting in a increase
in pre-tax profit of £18m and a 100 bps decrease in interest rates resulting
in a decrease in pre-tax profit of £(16)m.
Strategic expenditure
Strategic expenditure was £71m (2024: £23m). The year on year increase was
driven by the £50m cost in relation to Just's transaction advisory fees and
accelerating various share based payment schemes into the current year due to
the proposed acquisition by BWS, announced on 31 July 2025. Included in 2025
is a provision for the remaining transaction costs on completion. Ordinarily,
strategic expenditure relates to investment in the Group's new consumer facing
initiative, investment in other retail related propositions and costs
associated with the upgrade and expansion of our workplace property
facilities.
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 CSM includes amounts that are recognised in profit or loss
including the accretion and the amortisation of the CSM. The table below is on
a pre-tax basis:
Year ended 31 December 2025 Year ended 31 December 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 233 24 257 438 24 462
Accretion of interest on CSM 117 (10) 107 113 (30) 83
Changes to future cash flows at locked-in economic assumptions (106) 154 48 (92) 70 (22)
Release of CSM (197) 23 (174) (177) 23 (154)
Net transfers to CSM 47 191 238 282 87 369
CSM balance at 31 December 2,778 (212) 2,566 2,731 (403) 2,328
Capital management
The Group's capital coverage ratio was 179% at 31 December 2025(1) (31
December 2024: 204%)(1,2). The Solvency II capital coverage ratio is a key
metric and is considered to be one of the Group's KPIs. The movement in excess
own funds section sets out the drivers of the reduction to 179%.
31 December 2025(1) 31 December 2024(2)
£m £m
Own funds 2,740 3,055
Solvency Capital Requirement (1,531) (1,494)
Excess own funds 1,209 1,561
Solvency coverage ratio(1) 179% 204%
1 Solvency 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.
2 2025 regulatory position is estimated. 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 year to
31 December 2025.
Year ended Year ended
31 December 31 December
2025 2024
£m £m
Excess own funds at 1 January (proforma)(3) 1,561 1,527
Operating
In-force surplus net of TMTP amortisation 195 178
Financing costs (54) (48)
Non-life costs (11) (11)
Cash generation 130 119
New business strain(2) (116) (71)
Development costs and other (27) (25)
Management actions and other operating items (17) 58
Organic capital generation (30) 81
Non-operating
Strategic expenditure (73) (17)
Dividends (28) (23)
Economic movements (221) 49
Regulatory changes - (42)
Capital actions(3) - (14)
Excess own funds 1,209 1,561
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 The opening excess own funds is stated on a proforma basis after
the £155m Tier 3 debt repayment in February 2025. Capital actions reflect the
effect of repayment of the Tier 3 in 2025 and the Tier 2 refinancing in 2024.
Capital actions is net of the positive effect (if any) from release of
Solvency tiering restrictions.
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.
During 2025, the business delivered £130m of cash generation (2024: £119m),
driven by 10% growth in cash from in-force to £195m, reflecting the release
of risk allowances and capital held against the high volumes of profitable new
business written in recent years. The increase in financing costs reflects the
timing of interest payments following new debt issuance in September 2024,
while non-life costs remained stable at £11m (2024: £11m). We invested
£116m in new business capital strain with the year-on-year increase due to
writing business at 2.7% of premium (2024: 1.3% of premium). By remaining
disciplined and return focused, we maximised our available capital budget, but
this resulted in an 18% reduction in new business volumes to £4.3bn. This
level of new business strain is slightly above our target of below 2.5% of
premium, and relative to a weighted average of 1.7% of premium over the past
six years (2020-25 inclusive). Development costs and other were £27m (2024:
£25m). Management actions and other operating items were £(17)m due to
negative operating experience and assumption changes, partially offset by
modelling refinements (2024: £58m positive, driven by PLACL adoption of
internal model). When aggregated, this led to £(30)m of organic capital
consumption (2024: £81m organic capital generation).
Non-operating items
Changes in the capital surplus were as follows. Together, economic movements
summed to a £(221)m reduction, accounting for a 9pp decrease in the capital
coverage ratio ("CCR"). This is derived from the £(66)m effect from higher
long term interest rates during the year (4pp decrease in the CCR). Reflecting
that property price growth experience was slightly negative in 2025 (compared
to annual 3.3% long-term growth assumption), this led to a £(43)m decrease
(3pp decrease in the CCR). Asset trading timing, and other residual economic
variances summed to a £(112)m reduction (2pp decrease in the CCR). Payment of
shareholder dividends during 2025 cost £28m while strategic expenses reduced
the capital surplus by a further £73m. Strategic expenses include investments
to bring to market various retail related propositions and cost of new
workplace property facilities. In 2025, strategic costs also includes Just's
costs in relation to the BWS transaction.
There were no capital restrictions in the 31 December 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 31 December 2025 Solvency II balance sheet are
reported below.
At 31 December 2025
CCR Excess own funds
% £m
Solvency coverage ratio/excess own funds at 31 December 2025(1,2,3,4) 179 1,209
Impact of sensitivity applied increase/(decrease)
-50bps fall in interest rates (1) 76
+50bps increase in interest rates 0 (70)
+100bps credit spreads 14 129
Credit quality step downgrade(5) (7) (100)
-10% property values(6) (14) (198)
-5% mortality (9) (141)
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 being
met.
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.
6 Property sensitivity reflects the strengthening of the PRA EVT
minimum deferment rate to 4.5% (31 December 2024: 3.5%) and the impact of
basis updates. Sensitivity is applied after the application of NNEG hedges.
Reconciliation of IFRS equity to Solvency own funds
31 December 2025 31 December 2024
£m £m
IFRS net equity 1,110 1,246
CSM 2,566 2,328
Goodwill (43) (34)
Intangibles (4) (6)
Solvency risk margin (212) (194)
Solvency TMTP(1) 360 409
Other valuation differences and impact on deferred tax (1,662) (1,316)
Ineligible items (4) (3)
Subordinated debt 659 643
Group adjustments (30) (18)
Solvency own funds(1) 2,740 3,055
Solvency SCR(1) (1,531) (1,494)
Solvency excess own funds(1,2) 1,209 1,561
1 Solvency 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.
2 2025 regulatory position is estimated. 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.
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 for
2025.
Alternative profit measure format Reported(1) Quote date difference(2) CSM Deferral(3) Adjusted Statutory accounts format
31 December 2025 £m £m £m Total(4)
£m
Insurance service result Net investment result Other finance costs Other income, expenses and associates PBT
£m £m £m £m £m
New business profit 249 8 (257) -
CSM amortisation (67) 67 -
Net underlying CSM increase 182 8 (190) -
In-force operating profit:
Investment return earned 146 146 146 146
on surplus assets
Release of allowances for 33 33 33 33
credit default
CSM amortisation 67 67 174 (107) 67
Release of risk adjustment - - (3) 3 -
for non-financial risk
Other Group companies' (16) (16) (16) (16)
operating results
Development costs and other (36) (36) (36) (36)
Finance costs (71) (71) (71) (71)
Underlying operating profit 305 8 (190) 123
Operating experience and assumption changes (32) (48) (80) (1) (79) (80)
Investment and economic movements (98) (8) (106) 76 (190) 8 (106)
Strategic expenditure (71) (71) (71) (71)
Adjustment for transactions reported directly in equity in IFRS 16 16 16 16
Adjusted loss before tax 120 (238) (118)
Deferral of profit in CSM (238) 238 -
Loss before tax (118) (118) 170 72 (245) (115) (118)
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).
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.
4 The Adjusted total column is then transposed in the columns on
the right-hand side into the IFRS statutory accounts format. Figures are
presented on a net of reinsurance basis.
The IFRS loss before tax of £(118)m (2024: £113m profit) is reported after
deferral of £249m new business profit in CSM (2024: £460m) and any
experience/assumption changes (2025: £48m, 2024: £22m) in the balance sheet.
The CSM amortisation recognised in the IFRS result of £67m (2024: £71m)
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 £2,566m (2024: £2,328m).
Investment and economic movements recognised within IFRS finance costs of
£190m (2024: £192m) includes interest on repurchase agreements of £166m
(2024: £146m) that fund the Group's amortised cost portfolio of sovereign
gilts that stands at £4.0bn. Interest earned on the amortised cost gilts of
£176m (2024: £135m) is reported within net investment result.
Net interest received on collateral of £7m is reported gross within net
investment result for interest income of £31m and in finance costs for
interest paid of £(24)m. The remaining impact on Net investment result, and
IFRS PBT, from investment and economic movements of £89m (2024: £57m)
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.
31 December 2025 31 December 2024
£m £m
Assets
Financial investments 37,273 34,390
Reinsurance contract assets 2,055 2,067
Cash available on demand 758 808
Other assets 688 657
Total assets 40,774 37,922
Share capital and share premium 199 199
Other reserves 944 944
Retained earnings (355) (219)
Total equity attributable to ordinary shareholders of Just Group plc 788 924
Tier 1 notes 322 322
Total equity 1,110 1,246
Liabilities
Insurance contract liabilities 31,386 27,753
Reinsurance contract liabilities 125 94
Payables and other financial liabilities 7,344 7,889
Other liabilities 809 940
Total liabilities 39,664 36,676
Total equity and liabilities 40,774 37,922
The amounts reported in the Condensed consolidated statement of financial
position above for Insurance and Reinsurance contracts include our future cash
flows, risk adjustment and contractual service margin ("CSM"). The analysis of
these is included below.
31 December 2025 31 December 2024
Gross Net Reinsurance Net Gross Net Reinsurance Net
£m £m £m £m £m £m
Future cash flows 27,351 (813) 26,538 23,970 (838) 23,132
Risk adjustment 1,257 (905) 352 1,052 (732) 320
CSM 2,778 (212) 2,566 2,731 (403) 2,328
Net closing balance 31,386 (1,930) 29,456 27,753 (1,973) 25,780
After tax, the closing CSM is £1,927m (31 December 2024: £1,750m).
IFRS net assets
The Group's total equity at 31 December 2025 was £1.1bn (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 decreased to £788m (31 December 2024: £924m).
The closing CSM balance (post-tax) at 31 December 2025 is £1,927m (31
December 2024: £1,750m), which when added to £788m of total equity
attributable to ordinary shareholders (31 December 2024: £924m) less £46m
(post-tax) intangible assets (31 December 2024: £39m), results in Tangible
Net Assets of £2,669m or 257p per share (31 December 2024: £2,635m and 254p
respectively), on which we earned an 8.6% Return on equity (2024: 15.3%).
Financial investments
During the year, financial investments increased by £2.9bn to £37.4bn (31
December 2024: £34.5bn). 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 £29.8bn. The increase in
the portfolio has been driven by investment of the Group's £4.3bn 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 £21.5bn bond portfolio remains resilient, with
64% rated A or above (31 December 2024: 62%), 35% BBB, and 1% or £186m across
13 credits rated BB or below (of which £70m has been upgraded since year end
to BBB).
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, and selectively increased
the commercial mortgages investments. We continued to add a significant amount
of government bonds due to the continued tight corporate credit spread
environment, with excess 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 2025, we funded £2.2bn of illiquid assets, which represents 51% of new
business premiums. 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 originated illiquid assets via a panel of 11
specialist external asset managers, each carefully selected based on their
particular area of expertise. In future, we will gain access to the investment
expertise at Brookfield Asset Management. 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 £7.8bn in non-LTM illiquid assets, representing
27% of the investments portfolio (31 December 2024: 24%), spread across over
350 investments (average £22m), 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 £6.0bn represent 20% 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 41% (31 December 2024:
39%), reflecting the gradual seasoning of the mortgages across our
geographically diversified portfolio. In 2025, shareholder funded LTM advances
were £421m (2024: £326m), as we reacted to the tight spreads on public
credit by originating a greater proportion of illiquid assets and gilts.
Green and social assets
Over the three years from 2023-25, we invested £893m in eligible green and
social assets (target: £825m). These assets contributed towards completion of
our £400m green and social asset allocation commitment arising from the
sustainability tier 2 bond issued in September 2024. Eligible investments
include green buildings, renewable energy, clean transportation, access to
essential services, and affordable housing.
During 2025, we invested £230m in green buildings, a significant increase on
previous years. This reflects broader market developments, including stronger
tenant and landlord preferences for more sustainable, energy‑efficient
assets. These investments help reduce long‑term financial risk and deliver
attractive risk‑adjusted returns, while supporting our sustainability
strategy and contributing to positive environmental and social outcomes.
The sector analysis of the Group's financial investments portfolio is shown
below. The portfolio continues to be well diversified across a variety of
industry sectors.
31 December 2025 31 December 2025 31 December 2024 31 December 2024
£m % £m %
Basic materials 97 0.3 109 0.4
Communications and technology 967 3.2 1,154 4.3
Auto manufacturers 50 0.2 85 0.3
Consumer staples (including healthcare) 1,114 3.7 1,226 4.5
Consumer cyclical 165 0.6 178 0.7
Energy 214 0.7 278 1.0
Banks 1,325 4.5 1,469 5.4
Insurance 864 2.9 745 2.8
Financial - other 796 2.7 590 2.2
Real estate including REITs 651 2.2 630 2.3
Government 4,867 16.4 3,081 11.4
Industrial 558 1.9 524 1.9
Utilities 2,236 7.5 2,452 9.1
Commercial mortgages(1) 1,327 4.5 809 3.0
Long income real estate(2) 1,776 6.0 1,808 6.7
Infrastructure 4,438 14.9 3,512 13.0
Other 41 0.1 43 0.2
Bond total 21,486 72.3 18,693 69.2
Other assets 1,030 3.5 888 3.3
Lifetime mortgages 6,015 20.1 5,637 20.9
Liquidity funds 1,234 4.1 1,792 6.6
Investments portfolio 29,765 100.0 27,010 100.0
Derivatives and collateral 3,645 3,564
Gilts (interest rate hedging) 3,996 3,951
Total 37,406 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 £133m 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 £1,622m commercial
ground rents/income strips and £154m residential ground rents.
Events after the reporting period
In January 2026, the Government published the draft Commonhold and Leasehold
Reform Bill, aimed at phasing out the current leasehold system in England and
Wales. Key proposals include banning new leasehold flats, making commonhold
the default tenure, capping ground rents at £250 per annum (reducing to a
peppercorn), and abolishing forfeiture. Announcements from the previous
Conservative government and the King's Speech following the election of a new
Labour government in May 2025 meant that the Group had been closely monitoring
the new Government's agenda and the possible impact of this on the Group's
£154m portfolio of residential ground rents. The value of these assets had
previously been adjusted to reflect an expected increase in credit spread and
a consequential increase in the credit risk deduction for default. The Group
has not made any change to the approach for determining this adjustment as at
31 December 2025. As the announcement is post-year end, the new condition was
created after the reporting date and is therefore considered a non-adjusting
post balance sheet event. Should the proposed changes take effect, likely in
2028, it will result in an estimated decrease in the net assets of £0.1bn
(pre-tax) and a reduction in the Solvency ratio of 1% (unaudited).
Given the proximity to concluding the acquisition by Brookfield Wealth
Solutions Ltd, the Board is not recommending the payment of a final dividend.
Mark Godson
Group Chief Financial Officer
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
Year ended 31 December 2025 Year ended 31 December 2024
£m £m
Insurance revenue 2,073 1,809
Insurance service expenses (1,870) (1,621)
Net expenses from reinsurance contracts (33) (39)
Insurance service result 170 149
Interest income on financial assets measured at amortised cost 176 135
Other investment return 1,601 (263)
Investment return 1,777 (128)
Net finance (expenses)/income from insurance contracts (1,765) 480
Net finance income/(expenses) from reinsurance contracts 65 (52)
Movement in investment contract liabilities (5) (2)
Net investment result 72 298
Other income 17 18
Other expenses (132) (85)
Other finance costs (245) (241)
Share of results of associates accounted for using the equity method - (26)
(Loss)/profit before tax (118) 113
Income tax income/(expense) 19 (33)
(Loss)/profit for the year (99) 80
Other comprehensive income/(loss) for the year, net of income tax 1 (6)
Total comprehensive (loss)/income for the year (98) 74
Basic (loss)/earnings per share (pence) (10.7) 6.5
Diluted (loss)/earnings per share (pence) (10.7) 6.5
All (loss)/profit and comprehensive (loss)/income is attributable to equity
holders of Just Group plc in all periods presented.
The notes are an integral part of these financial statements.
Consolidated Statement of Changes in Equity
for the year ended 31 December 2025
Share capital Share premium Other reserves Retained earnings(1) £m Tier 1 Total equity excluding NCI Non- controlling interest Total
Year ended 31 December 2025 £m £m £m notes £m £m £m
£m
At 1 January 2025 104 95 944 (219) 322 1,246 - 1,246
Loss for the year - - - (99) - (99) - (99)
Other comprehensive income for the year, net of income tax - - - 1 - 1 - 1
Total comprehensive loss for the year - - - (98) - (98) - (98)
Contributions and distributions
Dividends - - - (28) - (28) - (28)
Interest paid on Tier 1 notes (net of tax) - - - (12) - (12) - (12)
Share-based payments reserve credit (net of tax) - - - 16 - 16 - 16
Transactions in shares held by trusts - - - (14) - (14) - (14)
Total contributions and distributions - - - (38) - (38) - (38)
At 31 December 2025 104 95 944 (355) 322 1,110 - 1,110
Year ended 31 December 2024 Share capital Share premium Other reserves Retained earnings(1) Tier 1 Total equity excluding NCI Non- controlling interest Total
£m £m £m £m notes £m £m £m
£m
At 1 January 2024 104 95 943 (259) 322 1,205 (2) 1,203
Profit for the year - - - 80 - 80 - 80
Other comprehensive loss for the year, net of income tax - - (2) (4) - (6) - (6)
Total comprehensive income for the year - - (2) 76 - 74 - 74
Contributions and distributions
Dividends - - - (23) - (23) - (23)
Interest paid on Tier 1 notes (net of tax) - - - (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 Includes currency translation reserve of £5m (31 December 2024: £5m).
Consolidated Statement of Financial Position
as at 31 December 2025
31 December 2025 31 December 2024
£m £m
Assets
Intangible assets 47 40
Property and equipment 34 20
Investment property 29 27
Financial investments 37,273 34,390
Investments accounted for using the equity method 114 119
Reinsurance contract assets 2,055 2,067
Deferred tax assets 416 387
Current tax assets - 1
Prepayments and accrued income 13 14
Other receivables 35 49
Cash available on demand 758 808
Total assets 40,774 37,922
Equity
Share capital 104 104
Share premium 95 95
Other reserves 944 944
Retained earnings (355) (219)
Total equity attributable to shareholders of Just Group plc 788 924
Tier 1 notes 322 322
Total equity attributable to owners of Just Group plc 1,110 1,246
Liabilities
Insurance contract liabilities 31,386 27,753
Reinsurance contract liabilities 125 94
Investment contract liabilities 50 42
Loans and borrowings 682 839
Payables and other financial liabilities 7,344 7,889
Accruals and provisions 77 59
Total liabilities 39,664 36,676
Total equity and liabilities 40,774 37,922
The financial statements were approved by the Board of Directors on 26
February 2026 and were signed on its behalf by:
Mark Godson
Director
Consolidated Statement of Cash Flows
for the year ended 31 December 2025
Year ended 31 December 2025 Year ended 31 December 2024
£m £m
Cash flows from operating activities
(Loss)/profit before tax (118) 113
Adjustments for:
Depreciation / amortisation 7 4
Share of results from associates - 26
Share-based payments (1) 1
Interest income (1,378) (1,217)
Interest expense 245 241
Change in operating assets and liabilities:
Net increase in financial investments (3,358) (4,247)
Decrease/(increase) in net reinsurance contracts balance 43 (955)
Decrease/(increase) in prepayments and accrued income 1 (2)
Decrease in other receivables 14 10
Increase in insurance contract liabilities 3,633 3,622
Increase in investment contract liabilities 8 7
Increase in accruals and provisions 18 9
(Decrease)/increase in net derivative liabilities, financial liabilities (734) 2,101
and other payables
Interest received 1,293 1,151
Taxation paid - (1)
Net cash (outflow)/inflow from operating activities (327) 863
Cash flows from investing activities
Payments for acquisition of property and equipment (19) (4)
Payments for acquisition of subsidiary net of cash acquired (9) -
Dividends received from associates 5 4
Net cash outflow from investing activities (23) -
Cash flows from financing activities
Proceeds on issue of borrowings (net of costs) - 398
Payment on redemption of borrowings (155) (256)
Payment for acquisition of non-controlling interests - (1)
Dividends paid (28) (23)
Coupon paid on Tier 1 notes (16) (16)
Interest paid on borrowings (57) (48)
Payment of lease liabilities - principal (2) (2)
Net cash (outflow)/inflow from financing activities (258) 52
Net (decrease)/increase in cash and cash equivalents (608) 915
Foreign exchange differences on cash balances - (2)
Cash and cash equivalents at 1 January 2,600 1,687
Cash and cash equivalents at 31 December 1,992 2,600
Cash available on demand 758 808
Units in liquidity funds 1,234 1,792
Cash and cash equivalents at 31 December 1,992 2,600
1. Material Accounting Policies
General information
Just Group plc (the "Company") is a public company limited by shares,
incorporated and domiciled in England and Wales with equity and debt
securities registered on the London Stock Exchange at the end at 31 December
2025. The Company's registered office is Enterprise House, Bancroft Road,
Reigate, Surrey, RH2 7RP.
1.1. Basis of preparation
The consolidated financial statements have been prepared in accordance with UK
adopted international accounting standards in conformity with the requirements
of the Companies Act 2006 and the disclosure guidance and transparency rules
sourcebook of the United Kingdom's Financial Conduct Authority applicable to
companies with a premium listing on the London Stock Exchange.
The consolidated financial statements have been prepared under the historical
cost convention, as modified by the revaluation of land and buildings, certain
financial assets and financial liabilities (including derivative instruments
and investment contract liabilities) and investment properties at fair value
and the accounting for the remeasurement of insurance and reinsurance
contracts as required by IFRS 17. Unless otherwise stated, values are
expressed to the nearest £1m.
The Just Group plc Annual Report and Accounts 2025, including the consolidated
financial statements, is available on the Group's website
https://www.justgroupplc.co.uk/investors/results-reports-and-presentations,
and a copy has been submitted to the National Storage Mechanism and will be
available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism. The auditor has
reported on those consolidated financial statements. Their reports for the
years ended 31 December 2025 and 31 December 2024 were (i) unqualified, (ii)
did not contain a statement under section 498 (2) or (3) of the Companies Act
2006, and (iii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report.
1.2. New accounting standards and new material accounting policies
The accounting policies adopted in the preparation of the Group's consolidated
financial statements for the year ended 31 December 2025 are consistent with
those adopted 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. The following new accounting standards are in
issue but not endorsed yet. These have not yet been adopted and are not
expected to have a significant impact on the results within the financial
statements:
· Annual improvements to IFRS Accounting standards - volume 11
(effective 1 January 2026). This includes minor clarifications to IFRS 7
'Classification and Measurement of Financial Instruments', IFRS 9 Financial
instruments', IFRS 10 'Consolidated financial statements' and IAS 7 'Statement
of cash flows'.
· Amendments to IFRS 9 & IFRS 7 (effective 1 January 2026).
These provide additional application guidance regarding recognition and
derecognition of financial instruments including an exception regarding
electronic payments, guidance regarding assessment of the solely payments of
principal and interest criteria, plus updates to disclosure requirements.
· IFRS 18 'Presentation and Disclosure in Financial Statements'
(effective 1 January 2027). IFRS 18 introduces new requirements on
presentation and disclosures in the financial statements, primarily focused on
(i) requiring additional defined subtotals in the statement of profit or loss;
(ii) requiring disclosures about management-defined performance measures and
(iii) adding new principles for the grouping of information. As a presentation
and disclosure standard, the Group does not expect financial impacts as a
result of adoption, however, initial views on the potential implications on
the presentation of the financial statements include the following:
- The statement of profit and loss requires grouping of items into
categories, operating, investing and financing. The main business activity of
the group is both investing in assets and providing insurance and therefore
the majority of income and expenses will be included within operating
activities.
- Management-defined performance measures will now be included within
the notes of the financial statements alongside greater disclosure surrounding
the importance of the measure, alongside a reconciliation to the most directly
comparable subtotal within the primary statements.
Additional Financial Information
The following additional financial information is unaudited.
Financial Investments Credit Ratings
The sector analysis of the Group's financial investments portfolio by credit
rating at 31 December 2025 is shown below:
Total % AAA AA A BBB % BBB BB or below
£m £m £m £m £m £m £m
Basic materials 97 0.3% - 5 21 67 0.9% 4
Communications and technology 967 3.2% 156 129 160 507 6.8% 15
Auto manufacturers 50 0.2% - - 13 37 0.5% -
Consumer staples (including healthcare) 1,114 3.7% 107 210 461 314 4.2% 22
Consumer cyclical 165 0.6% - 4 46 115 1.5% -
Energy 214 0.7% - 38 4 149 2.0% 23
Banks 1,325 4.5% 7 150 776 392 5.2% -
Insurance 864 2.9% - 429 183 252 3.4% -
Financial - other 796 2.7% 116 175 484 21 0.3% -
Real estate including REITs 651 2.2% 30 16 363 242 3.2% -
Government 4,867 16.4% 324 3,869 458 216 2.9% -
Industrial 558 1.9% - 59 267 228 3.0% 4
Utilities 2,236 7.5% - 173 290 1,773 23.8% -
Commercial mortgages 1,327 4.5% 113 436 684 73 1.0% 21
Long income real estate(1) 1,776 6.0% 154 253 933 436 5.8% -
Infrastructure 4,438 14.9% 53 265 1,378 2,645 35.5% 97
Other 41 0.1% - - 41 - - -
Corporate/government bond total 21,486 72.3% 1,060 6,211 6,562 7,467 100.0% 186
Other assets 1,030 3.5%
Lifetime mortgages 6,015 20.1%
Liquidity funds 1,234 4.1%
Investments portfolio 29,765 100.0%
Derivatives and collateral 3,645
Gilts (interest rate hedging) 3,996
Total 37,406
1 Includes residential ground rents of £154m rated AAA. Includes
direct long income real estate and where applicable, investment in trusts of
£133m 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 requires that the CSM on initial recognition is determined
using economic assumptions at the point of recognition. Just recognises
contracts in line with this timing, 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.
Year ended Year ended
31 December 2025
31 December 2024
£m
£m
New business CSM on gross business written 233 438
Reinsurance CSM 24 24
Net new business CSM 257 462
Impact of date used for profitability measurement (8) (2)
New business profit 249 460
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 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. 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, investment returns earned on
shareholder assets, together with the value of the (net) 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 Re 1 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 Group Ltd, eligible for
inclusion in its matching portfolio.
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 ("NBP") An APM and one of the Group's KPIs, representing the profit generated from new
business written in the year after allowing for the establishment of reserves
and 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 adjusted profit before tax, which 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 assumption Represents changes to cash flows in the current and future periods valued
based on end-of-period economic and assumptions. This is reported prior to the
deferral of profit in CSM from changes to future cash flows changes
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 operating The results of Group companies including our HUB group of companies, which
provides regulated advice and companies' intermediary services, and
professional services to corporates, and corporate costs incurred by Group
holding results companies.
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 partner premium. Premiums are
reported gross of commission paid.
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 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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