Just Group PLC

Regulatory Filings • Aug 16, 2021

National Storage Mechanism | Additional information

RNS Number : 7306I

Just Group PLC

16 August 2021

NEWS RELEASE	www.justgroupplc.co.uk

16 August 2021

JUST GROUP plc

SALE OF A PORTFOLIO OF LIFETIME MORTGAGES

Just Group plc ("Just", the "Group") announces the sale of a portfolio of lifetime mortgages ("LTMs") to Rothesay Life.

At the interim results on 12 August 2021 (the "Interim Results"), Just announced that it was in the process of selling a portfolio of LTMs with a loan value of over of £475m and an IFRS value as at 30 June 2021 of £493m.  Today Just announces that it has completed the sale of a proportion of this portfolio to Rothesay Life.  As noted in the Interim Results, Just's current expectation is that the sale of the remaining tranche of loans  is likely to occur over the coming weeks.

The LTM assets being sold form part of the investments used to back the insurance liabilities of the Group.  The consideration is £334m and is being satisfied in a mix of cash and gilts.  The proceeds received from this first transaction will subsequently be invested in a mixture of other fixed interest assets to back the insurance liabilities of the Group.

The sale announced today will result in an IFRS net of tax loss of £76m which includes the insurance liabilities impact due to the lower investment yield on the replacement bonds.  This forms part of the total expected c£125m IFRS loss for the sale of the portfolio of LTMs announced  in the Interim Results.  The gross IFRS value of the assets that have been sold is £254m.

This transaction enables the Group to further reduce its exposure to UK residential property risk. As announced at the Interim Results, the sale of this portfolio of LTMs, including the remaining tranche, is expected to result in an improvement in the Group's Solvency II capital coverage ratio by up to 1 percentage point and also reduce the sensitivity of that ratio to movements in UK residential property prices by over 1 percentage point.

Enquiries Investors / Analysts Alistair Smith, Investor Relations Telephone: +44 (0) 1737 232 792 alistair.smith@wearejust.co.uk Paul Kelly, Investor Relations Telephone: +44 (0) 20 7444 8127 paul.kelly@wearejust.co.uk	Media Stephen Lowe, Group Communications Director Telephone: +44 (0) 1737 827 301 press.office@wearejust.co.uk Rothesay Anthony Marlowe, Head of Communications & Public Affairs Telephone: +44 (0)7912 550184 anthony.marlowe@rothesay.com www.rothesay.com   Just and Rothesay Temple Bar Advisory 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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

DISQQLBFFVLZBBE