Last checked at 3 Nov 2016 07:00
NEWS RELEASE www.jrpgroup.com
3 November 2016
JRP GROUP PLC
NEW BUSINESS UPDATE FOR THE PERIOD ENDED 30 SEPTEMBER 2016
DELIVERING SUSTAINABLE PROFITABLE GROWTH
JRP Group plc ("JRP", "the Group") announces its new business update for the period ended 30 September 2016.
Highlights
· Total sales up 21% in the nine months ended 30 September 2016 on a pro forma basis |
· Guaranteed Income for Life (GIfL) sales up 12% to £603.8m on a pro forma basis |
· Defined Benefit De-risking (DB) sales of £578.4m, an increase of 29% on a pro forma basis |
· Lifetime Mortgage (LTM) advances of £464.7m, an increase of 27% on a pro forma basis |
· Solvency II SCR coverage ratio at 30 June 2016 would have risen to an estimated 151%, had the recently issued £250m in Tier 2 debt proceeds been in place
|
· IFRS new business margin guidance of 6% reaffirmed for the full calendar year |
Rodney Cook, Group Chief Executive, said:
"The benefits of the merger to the JRP Group continue to be demonstrated through both strong sales growth announced today and favourable margin development announced in September. Total sales were up 21% on a pro forma basis in the nine months, and 54% in the quarter ended September. We remain comfortable with our guidance of a 6% IFRS new business margin for the full calendar year and this represents levels last achieved before the pension freedoms were announced in 2014. As we disclosed at interims, we are ahead of schedule in delivering the synergy benefits of at least £45m per annum with the full run-rate being achieved by 2018.
The strong recovery of our business is demonstrated by our Retirement Income sales of £640.8m in the three months ended September. This compares to sales of £619.2m in the preceding six months which were impacted by a slow start to the year for Defined Benefit De-risking sales. Mortgage advances have continued to be strong, and are still ahead of our 25% of Retirement Income target for the year to date.
We are successfully adapting our business model to the new capital environment and remain confident of achieving attractive internal rates of return on new business once the synergy benefits are fully realised, well in excess of the recent cost of debt and our weighted average cost of capital. The combination of increased margins, strong synergy delivery and sound capital position confirm the sustainable growth which our business model can deliver.
We are pleased with the support we have received from institutional investors to our recent £250m Tier 2 capital transaction and this demonstrates their confidence in the Group's business model and its prospects."
JRP pro forma | 9 months | 9 months | Change | 3 months | 3 months | Change |
| to | to |
| to | to |
|
| 30/9/16 | 30/9/15 |
| 30/9/16 | 30/9/15 |
|
| £m | £m | % | £m | £m | % |
Defined Benefit De-risking | 578.4 | 449.7 | 29 | 414.0 | 127.6 | 224 |
Guaranteed Income for Life | 603.8 | 540.2 | 12 | 206.7 | 200.6 | 3 |
Care Plans | 77.8 | 62.3 | 25 | 20.1 | 21.7 | -7 |
Retirement Income sales | 1,260.0 | 1,052.2 | 20 | 640.8 | 349.9 | 83 |
Drawdown | 14.8 | 17.0 | -13 | 9.4 | 3.6 | 161 |
Total Retirement sales | 1,274.8 | 1,069.2 | 19 | 650.2 | 353.5 | 84 |
Protection | 3.8 | 3.1 | 23 | 1.5 | 1.0 | 50 |
Lifetime mortgage loans advanced | 464.7 | 366.7 | 27 | 142.9 | 161.9 | -12 |
Total new business sales | 1,743.3 | 1,439.0 | 21 | 794.6 | 516.4 | 54 |
JRP Statutory | 15 months | 15 months | Change |
| to | to |
|
| 30/9/16 | 30/9/15 |
|
| £m | £m | % |
Defined Benefit De-risking | 1,279.6 | 712.5 | 80 |
Guaranteed Income for Life | 798.6 | 610.6 | 31 |
Care Plans | 78.1 | 17.8 | 339 |
Retirement Income sales | 2,156.3 | 1,340.9 | 61 |
Drawdown | 22.0 | 52.3 | -58 |
Total Retirement sales | 2,178.3 | 1,393.2 | 56 |
Protection | 2.5 | 0.0 | - |
Lifetime mortgage loans advanced | 635.2 | 422.5 | 50 |
Total new business sales | 2,816.0 | 1,815.7 | 55 |
Notes
The merger of Just Retirement and Partnership is required for accounting purposes to be treated as an acquisition by Just Retirement of Partnership with an effective date of the beginning of April 2016. Accordingly the statutory information includes 15 months of Just Retirement and six months results of Partnership. Just Retirement Group plc (renamed JRP Group plc) changed its year end to 31 December and consequently its next statutory reporting period will be for the 18 months to December 2016. As a consequence pro-forma sales data as though the merger took place at the beginning of January 2015 have been presented to give the market an understanding of the business of the merged Group.
Enquiries
Investors / Analysts
James Pearce, Group Director of Corporate Finance and Investor Relations
Telephone: +44 (0) 7715 085 099 james.pearce@justretirement.com
| Media
Stephen Lowe, Group Communications Director
Telephone: +44 (0) 1737 827 301 press.office@justretirement.com
Temple Bar Advisory Alex Child-Villiers William Barker Telephone: +44 (0) 20 7002 1080
|
A copy of this announcement will be available on the Group's website www.jrpgroup.com
JRP GROUP PLC
GROUP COMMUNICATIONS
Vale House, Roebuck Close
Bancroft Road, Reigate
Surrey RH2 7RU