TIDMJUST

RNS Number : 2926G

Just Group PLC

18 July 2023

 
 
NEWS RELEASE  www.justgroupplc.co.uk

18 July 2023

JUST GROUP plc

STRONG MOMENTUM CONTINUES

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

Highlights

 
 
  *    Retirement Income sales have more than doubled to 
       GBP1.9bn . 
 
   *    DB sales are up 149% to GBP1.4bn . We completed 35 
        transactions during the period (H1 22: 14 
        transactions). The DB market has been consistently 
        busy this year, and w e expect this momentum to 
        continue. 
 
   *    Retail sales are up 54% to GBP0.5bn. The retail 
        annuity market is buoyant, as higher interest rates 
        have increased the guaranteed returns from annuities, 
        and made them significantly more attractive to 
        financial advisers and customers . 
 
   *    Given the strong new business growth in the first 
        half of 2023, we are highly confident of achieving 
        our financial ambitions for the full year. O ur 
        delivery so far in 2023 and positive ongoing momentum 
        further supports our confidence in Just's ability to 
        deliver 15% growth in underlying operating profit per 
        annum, on average over the medium term.

Retirement Income sales for H1 23 up 116% to GBP1.9bn

 
                               6 months to   6 months to 
 Just Group new business(1)       30/06/23      30/06/22   Change 
                                      GBPm          GBPm        % 
 Defined Benefit De-risking 
  ("DB")                             1,429           574      149 
 Guaranteed Income for Life 
  ("GIfL)(2)                           470           305       54 
                              ------------  ------------  ------- 
 Retirement Income sales             1,899           879      116 
                              ------------  ------------  -------

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

In DB, LCP(3) estimate that c.1,000 DB pension schemes (or one-in-five of the total) are already fully funded on an insurer buyout basis. In 2022, there were 201 DB transactions, of which Just completed 56. 2023 industry volumes are expected to significantly exceed the record GBP44bn written in 2019.

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

 
 
        *    Writing our largest (GBP513m) and smallest (GBP0.6m) 
             deals to date. 
 
        *    Completed 35 transactions of which 22 were less than 
             GBP10m. 
 
        *    The bulk quotation service now has over 200 schemes 
             from 19 EBCs.

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

David Richardson, Group Chief Executive, said:

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

Our DB business is going from strength to strength. During the last six months, we have announced our largest transaction to date at over GBP500m, and have a record pipeline of new business opportunities for the second half. Our bulk quotation service is growing in popularity and providing a steady source of completions as EBCs and trustees are increasingly seeing the benefits of price monitoring. We welcome the Chancellor's confirmation, in his recent speech, of the important role played by insurers offering buyouts.

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

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

 
 FINANCIAL CALENDAR                   DATE 
 Interim results for the six months   15 August 2023 
  ended 30 June 2023 
                                     ===============

Note 1: Numbers in table subject to rounding

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

Note 3: LCP, an employee benefit consultant

Note 4: All the figures are unaudited

 
 Enquiries 
 
  Investors / Analysts                   Media 
 
  Alistair Smith, Investor Relations     Stephen Lowe, Group Communications 
  Telephone: +44 (0) 1737 232 792        Director 
  alistair.smith@wearejust.co.uk         Telephone: +44 (0) 1737 827 301 
                                         press.office@wearejust.co.uk 
  Paul Kelly, Investor Relations 
  Telephone: +44 (0) 20 7444 8127        Temple Bar Advisory 
  paul.kelly@wearejust.co.uk             Alex Child-Villiers 
                                         William Barker 
                                         Telephone: +44 (0) 20 7183 1190

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

JUST GROUP PLC

GROUP COMMUNICATIONS

Enterprise House

Bancroft Road

Reigate

Surrey RH2 7RP

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