24th Jul 2019 10:21
(Alliance News) - Just Group PLC said Wednesday it has continued to reduce its new business volumes and instead focus on "less capital intensive areas".
Shares in Just Group were down 6.5% in London on Wednesday morning at 50.65 pence. In the year to date, the company's shares are down 45%.
The retirement products and services firm said it was able to shave GBP10 million of annualised costs from its core businesses in the first half.
"The message from our shareholders has been clear. We have good businesses in attractive markets, which are performing well commercially. However, we must reduce new business capital strain and achieve capital self-sufficiency by 2022. All of our decisions are being made with this objective in mind," said Interim Chief Executive David Richardson.
The retirement products specialist, in its annual general meeting statement in June, said loss making activities such as the US care business and UK income drawdown have been rationalised and there is scope for further cost reductions.
It also said it is adapting its intellectual property led business model in light of regulatory changes and to deliver a business which is performing well commercially and operationally.
"As we continue our constructive dialogue with the Prudential Regulation Authority, I am focused on adapting to the changing regulatory environment and putting the business on a surer footing for the future," Richardson added.
Just Group said it saw an increase in sales volumes in the second quarter following a "quiet" first quarter. The company's total retirement income sales jumped to GBP647 million in the three months to June 30 compared to GBP184 million in the immediately previous quarter.
The retirement income sales seen in the second quarter are 61% ahead of the year before.
Just Group recorded GBP486 million of defined benefit de-risking sales in the second quarter, sharply higher than the GBP26 million seen in the first quarter.
Just Group noted, however, its total retirement sales in the first half are down 30% compared to the year before at GBP831 million.
The company added: "Overall we remain comfortable with our guidance that 2019 sales will be consistent with the run rate established in the second half of 2018."
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