24th Jul 2018 09:18
LONDON (Alliance News) - Just Group PLC said on Tuesday it saw double-digit growth in new business sales in the first half of 2018, with the continued acceleration of its business that helps companies de-risk their defined-benefit pension schemes.
The retirement financial products provider reported total new business sales at GBP1.51 billion for the six months to the end of June, up 56% from GBP975.0 million the year before.
Defined Benefit De-Risking sales were the main source of growth, more than doubling to GBP718 million from GBP296 million. This is due to market acceleration driven by employee benefit consultants managing the industry pipeline, reducing seasonality.
Guaranteed Income for Life sales rose more modestly by 9% to GBP426 million from GBP390 million.
Lifetime Mortgage advances rose by 36% to GBP313 million from GBP230 million the prior year.
"These new business figures show that our strategy of focusing on attractive growth markets is working. Our segment of the defined benefit de-risking market has been buoyant, and increasing levels of shopping around have supported our GIfL business," said Chief Executive Rodney Cook.
"Volume growth has not been at the expense of financial discipline, and our focus remains on improving shareholder returns. The strength of first half new business means we are in a position to price even more selectively over the remainder of the year, particularly in DB De-risking, and we remain comfortable with the full year expectations," Cook added.
Just Group will publish its interim results on September 6.
Shares in Just Group were down 6.2% at 116.70 pence on Tuesday.
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