31st Oct 2018 08:41
LONDON (Alliance News) - Just Group PLC on Wednesday reported an "excellent" quarter with income from retirement product sales and lifetime mortgages significantly up.
For the three months to September 30, the FTSE 250-listed retirement specialist insurer increased its total new business sales by 17% to GBP765 million from GBP656 million the year before.
The results have the company racing to the top of the FTSE 250 index as one of the best performers in morning trading with shares up 5.4% at 94.25 pence each.
"I am pleased to report another excellent quarter, demonstrating the strength of the group's positioning and strategy. The markets in which we operate are generally buoyant," said Chief Executive Rodney Cook.
The insurer's retirement income sales increased 15% to GBP581 million from GBP504 million with a strong rise in defined benefit de-risking products, which increased 35% in the period to GBP363 million from GBP269 million the year before.
Just Group's lifetime mortgage loans advanced in the quarter increased 25% year-on-year to GBP170 million from GBP137 million.
Cook continued: "The defined benefit market has seen increased activity all year and the industry pipeline is very strong. In the guaranteed income for life market, shopping around continues to grow as a proportion of the total, helped by Financial Conduct Authority initiatives. Customer appetite for lifetime mortgages is increasing and supply from insurers is growing, all helping to stimulate strong market growth."
Just Group also said it has submitted its response to the UK Prudential Regulation Authority for consultation paper 13/18. The paper relates to firm's equity release mortgages, and Just Group is "preparing for a wide range of possible outcomes".
"CP13/18 is for us primarily a back book issue. The group has no further clarity on the outcome of the consultation but has continued to work hard to make detailed plans for a range of potential outcomes. We welcome the announcement by the PRA last week that the implementation date for the final proposals will not be before December 31. A longer implementation period provides greater flexibility to execute any necessary capital management actions," Chief Executive Cook said.
Just Group said it has "strengthened" its pricing discipline further in the third quarter, in anticipation of the potential increase in capital requirements from CP13/18.
This price increase is expected to affect sales in the fourth quarter but the insurer "remains confident of delivering a strong performance for the year".
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