16th Mar 2021 10:48
(Alliance News) - Shares in Just Group PLC rose on Tuesday after the retirement products firm said it achieved capital self-sufficiency target a year ahead of plan.
Total revenue for 2020 increased 21% to GBP4.65 billion from GBP3.83 billion, with net premium revenue rising 21% to GBP2.86 billion from GBP2.36 billion.
However, pretax profit fell 36% to GBP236.7 million from GBP368.6 million. Total claims and expenses rose 27% to GBP4.41 billion from GBP3.46 billion.
Adjusted operating profit was 9% higher at GBP239 million.
The company hailed its achievement of capital self-sufficiency more than a year earlier than originally planned. Its Solvency II capital coverage ratio grew to 156% from 141% at the end of 2019, an "exceptional achievement" given the difficult economic backdrop.
Just Group noted that the defined benefit market has been "very resilient" throughout the coronavirus crisis, with sales up 22% to GBP1.51 billion. The retail business was "initially more affected but adapted swiftly", the firm added.
"Whilst short-term uncertainties exist, the long-term opportunities and structural growth drivers remain clear. With a higher capital base and more resilient balance sheet, we are better able to navigate the uncertain macro environment, while continuing to write new business at attractive margins," said Chief Executive David Richardson.
"We have achieved a major landmark in the Group's history by achieving capital self-sufficiency," Richardson added. "We now have strong foundations in place to continue to grow profits and deliver attractive returns for shareholders. We have the capabilities to innovate and ensure we help more people achieve a better later life".
Just Group added that it will not recommend a payout for 2020, having not paid out anything for 2019.
"Whilst the group has made significant progress to build its capital base to accommodate the regulations on equity release mortgages and to start to grow its underlying capital generation, the external environment as we emerge from the pandemic continues to be uncertain," the company said.
By Lucy Heming;Â [email protected]
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