Just Group PLC

Earnings Release • Jan 18, 2024

National Storage Mechanism | Additional information

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 £3.9bn, 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 £4.3bn.
·	Total DB sales were up 21% to £3.4bn. We completed 80 transactions during the year (2022: 56 transactions), driven by our proprietary bulk quotation service. LCP4 estimate that 2023 industry volumes were c.£50bn, a new record, with this strong momentum to carry into 2024.
·	Retail sales were up 59% to £0.9bn. 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 origination5 increased by 50% to £1.6bn (2022: £1.0bn), 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 £3.9bn

Just Group new business1	Year ended 31/12/23	Year ended 31/12/22	Change
	£m	£m	%
Defined Benefit De-risking	2,999	2,568	17
Guaranteed Income for Life2	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 sales3	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 £48m in 2023 (2022: £44m)

Note 3: Total Defined Benefit De-risking sales is the sum of Defined Benefit De-risking and DB Partner (£2,999m + £416m = £3,415m)   

Note 4: LCP - a leading employee benefit consultant 

Note 5: In addition to £1.55bn of other illiquids, Just also funded £164m of lifetime mortgage assets

All the figures are unaudited

FINANCIAL CALENDAR	DATE
Results for the year ended 31 December 2023	7 March 2024 (provisional)
Annual General Meeting	7 May 2024
Interim results for the six months ended 30 June 2024	8 August 2024 (provisional)

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 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

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