Just Group PLC Business update for the six months to 30 June 2023 (2926G)
July 18 2023 - 2:00AM
UK Regulatory
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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