Just Group PLC SALE OF A PORTFOLIO OF LIFETIME MORTGAGES (7306I)
16 Agosto 2021 - 2:11AM
UK Regulatory
TIDMJUST
RNS Number : 7306I
Just Group PLC
16 August 2021
NEWS RELEASE www.justgroupplc.co.uk
16 August 2021
JUST GROUP plc
SALE OF A PORTFOLIO OF LIFETIME MORTGAGES
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.
Enquiries
Investors / Analysts Media
Alistair Smith, Investor Relations Stephen Lowe, Group Communications Director
Telephone: +44 (0) 1737 232
792 Telephone: +44 (0) 1737 827 301
alistair.smith@wearejust.co.uk press.office@wearejust.co.uk
Paul Kelly, Investor Relations Rothesay
Telephone: +44 (0) 20 7444 8127 Anthony Marlowe, Head of Communications
paul.kelly@wearejust.co.uk & Public Affairs
Telephone: +44 (0)7912 550184
anthony.marlowe@rothesay.com
www.rothesay.com
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
JUST GROUP PLC
GROUP COMMUNICATIONS
Enterprise House
Bancroft Road
Reigate
Surrey RH2 7RP
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END
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