Just Group PLC BUSINESS UPDATE FOR YEAR ENDED 31 DECEMBER 2023 (0662A)
January 18 2024 - 1:00AM
UK Regulatory
TIDMJUST
RNS Number : 0662A
Just Group PLC
18 January 2024
NEWS RELEASE www.justgroupplc.co.uk
18 January 2024
JUST GROUP plc
BUSINESS UPDATE FOR THE YEAR ENDED 31 DECEMBER 2023
Just Group plc ("Just", the "Group") announces a business update
for the year ended 31 December 2023.
Highlights
-- Shareholder funded Retirement Income sales up 24% to GBP3.9bn, driven
by both Defined Benefit De-risking ("DB") and Guaranteed Income for
Life ("GIfL"). Total Retirement Income sales, which includes DB Partner,
were up 27% to GBP4.3bn.
-- Total DB sales were up 21% to GBP3.4bn . We completed 80 transactions
during the year (2022: 56 transactions), driven by our proprietary
bulk quotation service. LCP(4) estimate that 2023 industry volumes
were c.GBP50bn, a new record, with this strong momentum to carry into
2024.
-- Retail sales were up 59% to GBP0.9bn. The GIfL market was its largest
since the introduction of Pension Freedoms in 2014, driven by higher
interest rates, which stimulated customer and advisor demand. We believe
that GIfL market growth is also benefiting from the introduction of
the FCA's Consumer Duty, which is prompting advisers to help customers
achieve their objectives by carefully considering all retirement income
products.
-- Other illiquid asset origination(5) increased by 50% to GBP1.6bn (2022:
GBP1.0bn), which supports our new business pricing, while also diversifying
the in-force asset backing portfolio. This demonstrates the scalability
of our "manager of managers" origination model.
-- New business strain is again expected to be below 2% and H2 23 new
business margins are expected to be higher than the 8.5% achieved in
H1. We have maintained strong pricing discipline and a continued focus
on risk selection, derived from our unique insight and positioning
in buoyant markets.
2023 Retirement Income sales up 24% to GBP3.9bn
Year ended Year ended
Just Group new business(1) 31/12/23 31/12/22 Change
GBPm GBPm %
Defined Benefit De-risking 2,999 2,568 17
Guaranteed Income for Life(2) 894 564 59
----------- ----------- -------
Retirement Income sales (shareholder
funded) 3,893 3,131 24
DB Partner (funded reinsurance) 416 259 61
----------- ----------- -------
Total Retirement Income sales 4,309 3,390 27
----------- ----------- -------
Note: Total Defined Benefit De-risking
sales(3) 3,415 2,827 21
David Richardson, Group Chief Executive, said:
"Our performance in 2023 further demonstrates the strength of
our new business model, with another year of exceptional delivery
against our ambitious growth plans. Our success is underpinned by
the sheer number of DB opportunities available, scheme funding at
record levels, and our capability to provide innovative solutions
consistently across the entire market. Furthermore, the GIfL market
has been revitalised by higher interest rates, while regulatory
change has stimulated advisers to consider carefully all product
options to achieve their customers' objectives.
I am once again very grateful to my colleagues, who with their
commitment and hard work continue to deliver so much success. In
doing so, we fulfil our purpose to help more people achieve a
better later life. We are well positioned to continue benefiting
from the long term growth drivers and positive developments in both
of our markets, and are very optimistic about what we can achieve
in the years ahead.
Our successes in 2023 and positioning in buoyant markets give us
increased confidence in our prospects for 2024. These strong
foundations enable us to continue delivering 15% growth in
underlying operating profit per annum, on average over the medium
term."
Note 1: Numbers in table subject to rounding
Note 2: Care Plan sales are now reported within the GIfL figure,
and were GBP48m in 2023 (2022: GBP44m)
Note 3: Total Defined Benefit De-risking sales is the sum of
Defined Benefit De-risking and DB Partner (GBP2,999m + GBP416m =
GBP3,415m)
Note 4: LCP - a leading employee benefit consultant
Note 5: In addition to GBP1.55bn of other illiquids, Just also
funded GBP164m of lifetime mortgage assets
All the figures are unaudited
FINANCIAL CALENDAR DATE
Results for the year ended 31 December 7 March 2024 (provisional)
2023
============================
Annual General Meeting 7 May 2024
============================
Interim results for the six months ended 8 August 2024 (provisional)
30 June 2024
============================
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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