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Highlights
Profitable Growth: Underlying operating profit surges by 34% to £504m, driven by increased sales and business scale.
Strong Capital Position: Solvency II coverage ratio rises to 204%, reflecting financial resilience and effective management actions.
Enhanced Shareholder Value: Return on equity climbs to 15.3%, with dividends growing by 20% to 2.5p per share.
Just Group plc (LSE:JUST) has announced its financial results for the year ending December 31, 2024, showcasing significant growth, capital strength, and increased returns to shareholders.
Profitable and Sustainable Growth
The Group achieved a substantial 34% increase in underlying operating profit, reaching £504 million, compared to £377 million in 2023. This growth was primarily fueled by a surge in new business sales, higher recurring in-force profits, and the benefits of increased scale.
Retirement Income sales rose by an impressive 36%, totaling £5.3 billion, up from £3.9 billion the previous year. Although new business margins slightly dipped to 8.7% (from 9.1%), the business mix remained strong, leading to a 30% increase in new business profits, which reached £460 million (£355 million in 2023).
Capital Resilience and Financial Strength
The Group’s capital coverage ratio improved to 204% on a proforma basis, compared to 197% at the end of 2023. This increase reflects the company’s strategic management actions and the ongoing diversification of its investment portfolio, which reduced interest rate and residential property sensitivities.
Despite a slight increase in new business strain to 1.3% (from 0.9%), this figure remains well within the target of below 2.5% of premiums. Cash generation before new business strain also rose to £119 million, up from £111 million, demonstrating the Group’s ability to generate sustainable cash flows through a low capital intensity business model.
Adjusted profit before tax came in at £482 million, down slightly from £520 million in 2023. This decline was driven by lower non-operating items, although the Group’s core profitability remained strong. Of the £482 million profit, £369 million was deferred to the Contractual Service Margin (CSM), resulting in an IFRS profit before tax of £113 million (£172 million in 2023).
Increasing Shareholder Value
Just Group continued to deliver value to shareholders, with return on equity rising to 15.3%, up from 13.5% the previous year. Tangible net assets per share also increased to 254p, reflecting the Group’s growing long-term value.
In light of the strong performance and future growth prospects, the Board declared a dividend of 2.5p per share, representing a 20% increase compared to the previous year. This decision underscores management’s confidence in the Group’s robust fundamentals and its ability to drive sustainable returns.
