Only retirement income sales drop 30%


Just Group retirement income sales fell 30% year-on-year, as of June 30, 2019, from £ 1,179 million to £ 831 million.

In his interim earnings report, Just revealed that his defined benefit sales in the six months to June fell 28% from £ 718million to £ 512million, with just £ 26million. sterling sales in the first quarter of 2019.

The company’s guaranteed income for lifetime sales also fell from £ 427million to £ 288million.

He said changes to its business model, which was designed to improve the company’s capital efficiency to achieve organic capital generation by 2022, included reductions in new business volumes to to “reduce the pressure on capital”.

As a result, the company recorded lower operating income from new business and adjusted operating income, “but a significant drop in new business pressure.”

Lifetime Mortgage Advances (LTM) are down 50% to £ 155.8million, “reflecting changing consumer demand and increasing levels of competition in the LTM market”.

Despite the losses, direct debit sales rose 10% to £ 26.4million as Just was in the process of outsourcing its revenue collection service. It closed its Flexible Pension Plan product to new business from July 2019.

The report notes: “The group operates in a market where changes in pension legislation can have a significant effect on our strategy and could reduce our sales and profitability or require us to hold more capital.

“Clients’ need for a secure income in retirement continues and the group expects the demand for guaranteed income solutions for life to continue.

“The availability for insurers of defined benefit risk reduction transactions is expected to increase. “

David Richardson, Interim CEO of the Just Group, added: “Capital is the number one priority of the group, and I am personally committed to generating organic capital by 2022.

“While we have made significant progress in adapting our business model, as evidenced by today’s results, the first half of 2019 was not easy for our company or for our shareholders, because we were faced with economic and regulatory challenges.

“However, we have made real operational progress and I am proud of the way the company is responding.”

Source link


About Author

Leave A Reply