BUSINESS UPDATE: 6 MONTH PERIOD ENDED 30 JUN 2018

RNS Number : 5075V
Just Group PLC
24 July 2018
 



NEWS RELEASE

www.justgroupplc.co.uk

                                                                                                                                                                     

24 July 2018

JUST GROUP plc

BUSINESS UPDATE FOR THE 6 MONTH PERIOD ENDED 30 JUNE 2018

RETIREMENT SALES GROWTH OF 62%

 

Just Group plc1 ("Just", "the Group") announces a business update for the 6 months ended 30 June 2018.

 

Highlights

·     

Retirement sales growth for H1 18 was 62% compared to H1 17, driven by exceptional Defined Benefit De-risking ("DB") sales

·     

DB sales of £718m were up 143% versus H1 17. This year we have seen an acceleration in the market as employee benefit consultants have managed the industry pipeline, reducing seasonality. At the same time we have further strengthened our pricing discipline

·     

Guaranteed Income for Life (GIfL) sales improved by 9% to £426m this year. In March 2018 the Financial Conduct Authority (FCA) introduced new rules requiring pension companies to show the best quote available from the open market in order to stimulate shopping around. The FCA's recently released 'Retirement Outcomes Review' outlines new proposals which should lead to greater take-up of GIfL via the open market option channel in which we operate, assisting customers to find better value

·     

Lifetime Mortgage (LTM) advances of £313m were up 36% in H1 18, below Retirement Income sales growth, demonstrating our active asset liability matching approach

Just Group new business2

6 months to

6 months to

Change

30/06/2018

30/06/2017


£m

£m

%

Defined Benefit De-risking

718

296

143

Guaranteed Income for Life

426

390

9

Care Plans

35

34

2

Retirement Income sales

1,179

720

64

Drawdown

24

22

7

Total Retirement sales

1,203

742

62

Protection3

1

3

(71)

Lifetime mortgage loans advanced

313

230

36

Total new business sales

1,517

975

56

 

Rodney Cook, Group Chief Executive, said:

"These new business figures show that our strategy of focusing on attractive growth markets is working. Our segment of the defined benefit de-risking market has been buoyant, and increasing levels of shopping around have supported our GIfL business.

Volume growth has not been at the expense of financial discipline, and our focus remains on improving shareholder returns. The strength of first half new business means we are in a position to price even more selectively over the remainder of the year, particularly in DB De-risking, and we remain comfortable with the full year expectations.

The Prudential Regulation Authority (PRA) has issued CP13/18 in order to open a further consultation around Life Time Mortgages being held to back annuity liabilities. The consultation with the industry will close on 30 September 2018, and the conclusion from the PRA will be available in time for a 31 December 2018 implementation and phase-in period. However, CP13/18 does contain proposals, which if implemented would result in a reduction in Just's regulatory capital position.2   The outcome will depend on the result of the consultation process. We, together with the industry, continue to work constructively with the PRA as part of the consultation and will update the market when appropriate."

 

New business sales by quarter (£m)3

3 months to:

30 Jun 2018

31 Mar 2018

31 Dec 2017

30 Sep 2017

30 Jun 2017

31 Mar 2017

31 Dec 2016

30 Sep 2016

30 Jun 2016

Defined Benefit De-risking

469

249

434

269

170

125

365

414

121

Guaranteed Income for Life

238

188

213

217

216

174

174

207

234

Care Plans

18

18

20

18

17

17

19

20

29

Retirement Income

725

454

666

504

403

317

559

641

384

Drawdown

13

11

14

14

11

12

10

9

4

Total Retirement sales

738

465

681

518

414

328

569

650

388

Protection4

-

1

2

1

1

2

1

2

1

LTM loans advanced

162

151

142

137

124

107

95

143

173

Total new business sales

900

617

826

656

539

436

665

795

562

 

Notes

1.     The company changed its name from JRP Group plc to Just Group plc at the AGM on the 18th May 2017.

2.     Our SFCR, published on 18 June 2018 and available on our website, contained commentary on the risks associated with these and other ongoing regulatory developments.

3.     Numbers in table subject to rounding.

4.     Protection closed to new business in Q4 17. Q1 18 protection new business sales represented applications in the pipeline.

 

 

Enquiries

 

Investors / Analysts

 

James Pearce, Director of Group Finance

 

Telephone: +44 (0) 7715 085 099

james.pearce@wearejust.co.uk

 

 

 

 

Media

 

Stephen Lowe, Group Communications Director

 

Telephone: +44 (0) 1737 827 301

press.office@wearejust.co.uk

 

Temple Bar Advisory

Alex Child-Villiers

William Barker

Telephone: +44 (0) 20 7002 1080

 

 

FINANCIAL CALENDAR

 

DATE

Interim results for the six months to 30 June 2018

6 September 2018

 

 

A copy of this announcement will be available on the Group's website www.justgroupplc.co.uk

 

JUST GROUP PLC

GROUP COMMUNICATIONS

Vale House, Roebuck Close

Bancroft Road, Reigate

Surrey RH2 7RU

 

 


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