Last checked at 18 May 2017 07:00
NEWS RELEASE | www.jrpgroup.com |
18 May 2017
JRP GROUP PLC
BUSINESS UPDATE FOR THE 3 MONTH PERIOD ENDED 31 MARCH 2017
DISCIPLINED GROWTH
JRP Group plc ("JRP", "the Group") announces a business update for the period ended 31 March 2017.
Highlights
· Overall total new business sales of £436m grew by 13% (pro forma1), driven by a large increase in Defined Benefit de-risking (DB) volumes, partly offset by more normal levels of mortgage advances. Sales were up 92% compared to the statutory Q116 level, which excluded Partnership. · DB sales were 191% higher (pro forma) at £125m. DB de-risking growth prospects remain very positive, as we tailor solutions and focus on transactions of less than £250m. · Guaranteed Income for Life (GIfL) sales were up 7% (pro forma) to £174m, helped by a stabilizing market and demographic growth. Care sales were £17m due to increased pricing selectivity, offsetting the increase in GIfL. | |||||
· Lifetime Mortgage (LTM) advances fell by 29% (pro forma) against a tough comparator. At 34% of Retirement Income sales (Q116 pro forma - 63%), we took advantage of attractive economics and have warehoused excess assets for use later in the year.
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JRP new business2 | 3 months to | Pro forma 3 months to | Change | Statutory 3 months to |
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31/03/17 | 31/03/16 | 31/03/16 |
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£m | £m | % | £m |
| |
Defined Benefit De-risking | 125 | 43 | 191 | 43 |
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Guaranteed Income for Life | 174 | 163 | 7 | 87 |
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Care Plans | 17 | 29 | (41) | 13 |
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Retirement Income sales | 317 | 235 | 35 | 142 |
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Drawdown | 12 | 2 | 582 | 2 |
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Total Retirement sales | 328 | 237 | 39 | 144 |
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Protection | 2 | 1 | 20 | - |
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Lifetime mortgage loans advanced | 107 | 149 | (29) | 83 |
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Total new business sales | 436 | 387 | 13 | 227 |
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Rodney Cook, Group Chief Executive, said:
"While maintaining our strong focus on margins and profit growth, I am delighted that we have also been able to grow sales in the first quarter of 2017. Our core GIfL and DB products both grew well, confirming the momentum of these segments. The DB market offers sustained growth, and our pipeline in the below £250m segment remains very encouraging. Our profit focus should deliver IFRS new business margins in excess of the mid 6% range and we remain on track to deliver a sustainable mid-teen IRR3 on shareholder capital deployed in new business by year-end 2018. This will be helped by the progress being made with the £45m merger cost saving programme. Along with a number of other firms, we have been granted Prudential Regulation Authority (PRA) approval to publish a single group Solvency and Financial Condition Report on 30 June. In common with most UK life companies, our capital position benefits from a significant transitional, in line with the PRA's stance that recognises transitionals as long term capital. The directors remain comfortable that the Group's capital position is appropriate to deliver the growth and returns that we are targeting. Overall we have enjoyed a solid start to the year and we remain on track to meet our expectations."
Notes
1. 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 comparative information includes 3 months of sales by Just Retirement only. Pro forma sales are presented as though the merger took place at the beginning of January 2016, in order to give a better understanding of the merged Group.
2. Numbers in table subject to rounding.
3. IRR: Internal Rate of Return
FINANCIAL CALENDAR
| DATE |
Annual General Meeting Final dividend payment date, subject to shareholder approval Guaranteed Income for Life ("GIfL") seminar Publication of Solvency & Financial Condition Report (SFCR) Interim results for the six months to 30 June 2017 | 18 May 2017 26 May 2017 29 June 2017 30 June 2017 13 September 2017 |
Enquiries
Investors / Analysts
James Pearce, Group Director of Corporate Finance and Investor Relations
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 |
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