TIDMJUST
RNS Number : 7352Y
Just Group PLC
18 January 2022
NEWS RELEASE www.justgroupplc.co.uk
18 January 2022
JUST GROUP plc
BUSINESS UPDATE FOR THE YEAR ENDED 31 DECEMBER 2021
Just Group plc ("Just", the "Group") announces a business update
for the year ended 31 December 2021.
Highlights
-- Retirement Income sales up 25% to GBP2.7bn, of which Defined Benefit
De-risking ("DB") sales were up 28% to GBP1.9bn.
-- New business profits grew by a "low double digit" percentage, with
lower new business strain. IFRS new business margins improved in H2
21, and are expected to be c.8.5% for the full year. Over one-third
of DB sales are in the capital efficient deferred members segment and
as a result, Solvency II new business capital strain for 2021 as a
whole will be below 2% of premium.
-- Underlying organic capital generation more than double the FY20 result
, exceeding our 2022 target a year ahead of expectations.
Retirement Income sales for 2021 up 25% to GBP2.7bn
12 months to 12 months to
Just Group new business(1) 31/12/21 31/12/20 Change
GBPm GBPm %
Defined Benefit de-risking 1,935 1,508 28
Guaranteed Income for Life
(incl. Care)(2) 739 637 16
Retirement Income sales 2,674 2,145 25
The DB market is buoyant in particular over the second half of
2021. During 2021, we completed 29 transactions (2020: 23
transactions), and significantly increased the proportion of
business from the DB deferred segment. Total DB De-risking sales
exceeded GBP1.9bn, a record for the Group. This heightened activity
in H2 21 has continued, with a strong pipeline of opportunities
available.
The market for guaranteed income for life solutions has
recovered strongly following the COVID-19 related sales disruption
in the first half of 2020. Sales in 2021 were up 16% on 2020 and 8%
higher than 2019. In recognition of the outstanding service we
deliver, we were named Company of the Year at the recent Financial
Adviser Service Awards, as well as achieving five stars in both the
Pensions and Protection, and Mortgages categories.
DB deferred business
In early 2021 we expanded our proposition in the DB de-risking
market to meet fully the needs of schemes and trustees. As a
consequence of multi-year de-risking journeys, scheme funding
levels across the industry have improved. This has increased the
deferred part of the DB market with more schemes able to afford
full scheme de-risking as opposed to pensioner-only de-risking. We
expect this trend to continue.
We are pleased that the level of DB deferred business written by
the Group in 2021 has exceeded our targets and represented 38% of
total DB sales (2020: 2%). DB deferred business is written at
significantly better Solvency II new business strain than pensioner
in-payment DB and retail business. This longer duration business
has a slightly lower upfront IFRS new business profit margin,
however it delivers similar total profits over the lifetime of the
contract.
Underlying organic capital generation ("UOCG")
The higher proportion of DB deferred business combined with our
continued focus on risk selection, pricing discipline, asset
diversification and cost control have resulted in the Group
achieving an outperformance in new business strain. Sales have
increased by 25%, however the amount of capital invested in new
business has reduced. As a result, we expect that UOCG will be more
than double the FY20 result, exceeding our 2022 target a year ahead
of expectations.
David Richardson, Group Chief Executive, said:
"Over the last two years we have transformed the business and
are now in a position to deliver profitable and sustainable growth
to shareholders. This is demonstrated by the excellent 25%
Retirement Income sales growth in 2021 at attractive profit
margins. The growth potential for the Group in the DB market is
significant and has been further strengthened by the deployment of
our expanded capital light DB deferred proposition.
This profitable growth has been achieved alongside more than
doubling our underlying organic capital generation, enabled by a
further reduction in our market leading new business strain and
tight cost control. Our sustainable growth strategy is further
enhanced by the ability to accelerate low capital strain new
business sales. This creates substantial future value in addition
to our existing in-force book.
Furthermore, we are comfortable with our robust capital position
and are pleased that we have finalised the regulatory treatment of
lifetime mortgages in our internal model.
I am very grateful for the fantastic effort from our colleagues
during 2021. Once again they provided outstanding service to our
customers and distribution partners, enabling us to help more
people achieve a better later life. We are in a strong position to
deliver further profitable growth at attractive returns for
shareholders in 2022 and beyond."
FINANCIAL CALENDAR DATE
Results for the year ended 31 December 10 March 2022
2021
==============
Note 1: Numbers in table subject to rounding.
Note 2: Care Plan sales are now reported within GIfL. 2020
comparators have been adjusted.
Note 3: The determination of market leading is based on
published information from the annuities segment of peer group
companies.
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDUBOWRUBUAAAR
(END) Dow Jones Newswires
January 18, 2022 02:00 ET (07:00 GMT)
Just (LSE:JUST)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Just (LSE:JUST)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024