13th Aug 2020 10:56
(Alliance News) - Retirement products firm Just Group PLC on Thursday said profit more than doubled in its first half, benefiting from low interest rates and despite revenue falling.
Shares in the company were 14% higher at 57.80 pence each in London on Thursday morning.
Just Group posted pretax profit of GBP304.5 million in the six months to June 30, a jump from GBP125.3 million a year earlier. Just Group noted this was helped by "investment and economic profits due to the fall in interest rates and stable underlying operating profit".
Gross premiums written fell 10% year-on-year to GBP746.2 million and net premium revenue was down by a third to GBP677.7 million.
Total revenue, which also includes net investment income, was down 11% to GBP1.81 billion from GBP2.04 billion.
Just Group said total claims and expenses were down 21% at GBP1.51 billion from GBP1.91 billion during the period.
The company noted its solvency coverage ratio improved to 145% from 141% at the end of December.
Chief Executive Officer David Richardson said: "I am very pleased with our progress in the first half of 2020 - our capital coverage ratio has increased to 145% during a turbulent and difficult time in financial markets."
On Wednesday, Just Group said it appointed John Hastings-Bass as its new chair. Hastings-Bass joins from private equity backed global insurance broking firm BMS Group.
By Eric Cunha; [email protected]
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