AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
.jpg)
Highlights
- The Financial services group reported increase in retirement income sales by 25% to £2.7 billion in FY2021.
- The group added that the organic capital generation for 2021 is expected to more than double compared to FY2020.
FTSE 250-listed financial services group Just Group plc (LON: JUST) specializes in retirement income. The group has been in news after it announced its business update on 18 January for the year ended 31 December 2022. The insurance company reported increase in retirement income sales and new business profits for FY2021, sending its shares to surge.
Full-Year Result
The financial services group reported increase in retirement income sales by 25% to £2.7 billion in FY2021, boosted by 28% rise in defined benefit de-risking sales to £1.9 billion and strong market recovery after sales disruption in the first half of 2020 due to Covid restrictions. The retirement income sale represents the level of group’s gross premium written, which has exceeded its target by representing 38% of the total de-risking sales as compared to 2% in FY2020.
The profits from new business grew by a “low-double digit” percentage, with lower new business strain. Over one-third of the de-risking sales are in the capital efficient deferred members’ segment.
In August 2021, the Finance service group announced the sale of portfolio of lifetime mortgages to Rothesay Life with a loan value of over £475 million to back the insurance liability.
Also Read: Pearson’s (PSON) shares jump 6% on upped profit outlook: Buy alert?
Will 2022 be a better year?
The group added that the organic capital generation for 2021 is expected to more than double as compared to FY2020, and that it would exceed its expectations a year earlier than anticipated as the amount invested in new business has reduced.
The group in FY2021 expanded its proposition in DB de-risking market to meet the needs of trustees and schemes. As a result, schemes funding levels have improved. Higher proportion of de-risking business with its focus on asset diversification, risk selection, cost control and pricing discipline have helped the group to outperform in the new business strain.
Also Read: Should you buy 888 Holdings Plc shares right now?
Share Price Performance
With a market cap of £960.09 million, Just Group plc’s (LON: JUST) shares closed trading at GBX 92.50, up by 0.05%, on 20 January 2022. The Financial services group has given a positive return of 19.12% to its shareholders in the last one year while its year-to-date returns stood at 10.65% as of 19 January 2022.
The group’s growth potential in the DB market is significant and is further supported by the deployment of its expanded capital light DB deferred proposition.
