RNS Number : 7306I

Just Group PLC

16 August 2021

NEWS RELEASE  www.justgroupplc.co.uk 

16 August 2021



Just Group plc ("Just", the "Group") announces the s ale of a portfolio of lifetime mortgages ("LTMs") to Rothesay Life.

At the interim results on 12 August 2021 (the "Interim Results"), Just announced that it was in the process of selling a portfolio of LTMs with a loan value of over of GBP475m and an IFRS value as at 30 June 2021 of GBP493m. Today Just announces that it has completed the sale of a proportion of this portfolio to Rothesay Life. As noted in the Interim Results, Just's current expectation is that the sale of the remaining tranche of loans is likely to occur over the coming weeks.

The LTM assets being sold form part of the investments used to back the insurance liabilities of the Group. The consideration is GBP334m and is being satisfied in a mix of cash and gilts. The proceeds received from this first transaction will subsequently be invested in a mixture of other fixed interest assets to back the insurance liabilities of the Group.

The sale announced today will result in an IFRS net of tax loss of GBP76m which includes the insurance liabilities impact due to the lower investment yield on the replacement bonds. This forms part of the total expected cGBP125m IFRS loss for the sale of the portfolio of LTMs announced in the Interim Results. The gross IFRS value of the assets that have been sold is GBP254m.

This transaction enables the Group to further reduce its exposure to UK residential property risk. As announced at the Interim Results, the sale of this portfolio of LTMs, including the remaining tranche, is expected to result in an improvement in the Group's Solvency II capital coverage ratio by up to 1 percentage point and also reduce the sensitivity of that ratio to movements in UK residential property prices by over 1 percentage point.

  Investors / Analysts                   Media 
  Alistair Smith, Investor Relations     Stephen Lowe, Group Communications Director 
  Telephone: +44 (0) 1737 232 
  792                                    Telephone: +44 (0) 1737 827 301 
  alistair.smith@wearejust.co.uk         press.office@wearejust.co.uk 
  Paul Kelly, Investor Relations         Rothesay 
  Telephone: +44 (0) 20 7444 8127        Anthony Marlowe, Head of Communications 
  paul.kelly@wearejust.co.uk             & Public Affairs 
                                         Telephone: +44 (0)7912 550184 
                                         Just and Rothesay 
                                         Temple Bar Advisory 
                                         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



Enterprise House

Bancroft Road


Surrey RH2 7RP

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(END) Dow Jones Newswires

August 16, 2021 03:11 ET (07:11 GMT)

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