Just Group PLC SALE OF A PORTFOLIO OF LIFETIME MORTGAGES (4220C)
February 22 2022 - 3:40AM
UK Regulatory
TIDMJUST
RNS Number : 4220C
Just Group PLC
22 February 2022
NEWS RELEASE www.justgroupplc.co.uk
22 February 2022
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 ("LTM") to Rothesay Life plc
("Rothesay").
Today Just announces that it has completed the sale of a
portfolio of LTM to Rothesay, with a current outstanding loan
balance of GBP537m and an IFRS value as at 31 December 2021 of
GBP772m. The LTM assets being sold form part of the investments
used to back the insurance liabilities of the Group. The
consideration is cGBP687m, payable in cash.
The proceeds received will be reinvested in a mixture of other
fixed interest assets to back the insurance liabilities of the
Group. The sale will result in an IFRS net of tax loss of cGBP35m
which includes the impact on the insurance liabilities resulting
from the expected new asset mix.
This is the third sale by the Group of an LTM portfolio over the
last fifteen months and further reduces Just's exposure to UK
residential property risk. This completes the Group's programme of
LTM portfolio sales.
The G roup will announce results for the year ending 31 December
2021 on 10 March 2022 and will update the market on its Solvency II
position and reduced sensitivity to moves in the UK property market
at that time. The impact of the sale on the Group's Solvency II
capital ratio will be broadly neutral.
David Richardson, Group Chief Executive, said:
"I am very pleased to have completed our third LTM portfolio
sale, which, together with the three NNEG hedges we have completed
and the reduction in new business LTM backing ratio we have
achieved over the last two years, leaves our solvency position much
more resilient to stresses in the UK housing market. This,
alongside both our improved capital base and organic capital
generation, has established a strong foundation for the business,
from which to deliver profitable and sustainable growth."
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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