16th Aug 2021 09:28
(Alliance News) - Just Group PLC on Monday said it has sold a batch of lifetime mortgage assets to pensions insurance firm Rothesay Life PLC for GBP334 million.
Reigate, Surrey-based Just Group, which provides retirement financial services to individuals and companies, said the assets are part of a wider portfolio of lifetime mortgages that it plans to dispose of.
Last Thursday, the company said it was in the process of selling a portfolio of lifetime mortgages which had a loan value of GBP475 million and an IFRS valuation of GBP493 million on June 30.
Just Group will receive the GBP334 million from the sale through a mix of cash and gilts. The sale announced on Monday will result in a GBP76 million IFRS loss, net of tax. The GBP76 million loss is part of the GBP125 million hit it expects to take from the disposal of the full portfolio of lifetime mortgages.
"As noted in the interim results, Just's current expectation is that the sale of the remaining tranche of loans is likely to occur over the coming weeks," the company added.
"This transaction enables the group to further reduce its exposure to UK residential property risk."
Just Group on Thursday reported a drop in total revenue and a swing to a loss in the first half of 2021 after booking a heavy net investment charge.
Net premium revenue increased 33% year-on-year to GBP898.4 million from GBP677.7 million. But after recording a net investment expense, versus net investment income last year, total revenue fell 86% to GBP247.0 million from GBP1.81 billion. It swung to a pretax loss of GBP86.8 million from a profit of GBP304.5 million.
Just Group shares were 1.3% lower at 92.70 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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