Just Group shares jump as 2021 retirement income sales rise 25%


The Just Group logo is seen displayed on a smartphone in front of the same logo displayed in this illustration taken December 1, 2021. REUTERS/Dado Ruvic

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LONDON, Jan 18 (Reuters) – British insurer Just Group’s (JUSTJ.L) pension income sales and new business profits both rose last year, it said in a statement on Tuesday. trading update for 2021, sending its shares soaring.

Just Group specializes in annuities paying fixed income to retirees with reduced life expectancy.

The company said revenue from retirement sales jumped 25% to 2.7 billion pounds ($3.68 billion) last year, while new business profits rose a percentage. two digits”.

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The company added that its underlying organic capital generation more than doubled from a year earlier, beating its 2022 target a year earlier.

“After improving and rebuilding the capital position, we have returned to growth,” CEO David Richardson told Reuters.

Shares of Just Group were up 6.3% at 91.20 pence at 09:16 GMT, sending it to the top of the FTSE mid-cap index (.FTMC). RBC analysts described retirement income sales as “strong”, reiterating their “outperform” rating on the stock.

Just Group and other UK life insurers have suffered in recent years as pension reforms have led to a drop in demand for individual annuities,

But demand has grown for so-called block annuities, which involve the transfer of risk from a UK company’s defined-benefit pension schemes – or final salary – to an insurer. These plans are often in deficit, which weighs on the balance sheets of companies.

Just Group’s bulk annuity sales hit a record high of over £1.9bn in 2021 and it said there was a strong pipeline of potential deals.

It releases full 2021 results on March 10.

($1 = 0.7335 pounds)

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Reporting by Iain Withers and Carolyn Cohn; Editing by Rachel Armstrong, Kirsten Donovan

Our standards: The Thomson Reuters Trust Principles.

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