Last checked at 24 Jul 2018 07:00
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