24th Feb 2015 09:11
LONDON (Alliance News) - The future of Just Retirement PLC as a listed company depends on shareholders, according to Chief Executive Rodney Cook, who on Tuesday told reporters that the annuity provider would participate in industry consolidation if it improves value.
Just Retirement, which floated on the London Stock Exchange in November 2013, remains majority-owned by Avallux Sarl, an entity controlled by private equity firm Permira, which holds a 62% stake in the company, with a 38% free float.
The group has been touted as a potential participant in life-insurance industry consolidation following last year's Budget, in which the UK government removed the effective requirement on individuals to buy annuity products. However, on Tuesday, Just Retirement reported resilient first-half results, as the market awaits the introduction of new pensions and savings rules in April this year.
Noting the proposed GBP5.6 billion acquisition of Friends Life Group Ltd by Aviva PLC, Cook said he knows of "no reason why Permira may involve themselves in such an arrangement but we stand to participate in market activity if it serves to improve shareholder value".
"We have a very clear organic growth strategy, but the point is that we are a listed company," Cook told reporters in a conference call.
Just Retirement shares were up 17% at 167.80 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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