In This Article:
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Revenue: New business sales up 36% to GBP5.3 billion.
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Profit: Profits increased by 34% to GBP504 million.
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Operating Earnings Per Share: 36p.
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Return on Equity: Increased to over 15%.
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Tangible Net Asset Value: Up 30p to 254p per share.
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Solvency Ratio: 204%.
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Dividend: Increased by 20%.
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New Business Strain: 1.3%, below the target of less than 2.5%.
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Gross Margin: 8.7%.
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Cash Generation: GBP119 million.
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DB Business Sales: GBP4.3 billion, up 43% year on year.
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Total DB Premiums: GBP5.4 billion, over 11% market share.
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GIfL Sales: Doubled over the last two years.
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Investment Assets: GBP27 billion, with 80% managed internally.
Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Just Group PLC (LSE:JUST) reported record sales and profits, with profits up 34% to GBP504 million.
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The company achieved a significant increase in return on equity, reaching over 15%.
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New business sales grew by 36% to GBP5.3 billion, driven by both DB and retail businesses.
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The solvency ratio stands at a robust 204%, providing significant headroom for future growth.
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The dividend was increased by 20%, reflecting confidence in the business's future prospects.
Negative Points
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The DB market tends to be more weighted towards the second half of the year, which may affect the timing of growth.
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The company faces regulatory costs of GBP42 million related to Solvency UK reforms.
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There is a potential risk associated with funded reinsurance transactions, which are under regulatory scrutiny.
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Tight public credit markets could potentially impact margins, although the company has managed to maintain them so far.
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The share price reaction to the earnings announcement was not as positive as expected, despite strong financial performance.
Q & A Highlights
Q: Can you provide an update on the pipeline for the Beacon platform and the rationale behind the 20% dividend growth? A: David Richardson, CEO, explained that the Beacon platform continues to grow with over 300 schemes and regular additions. The dividend growth reflects confidence in the business's long-term value, supported by surplus capital used primarily for new business investments. Mark Godson, CFO, added that the company has sufficient capital to support growth ambitions without external funding.
Q: Why hasn't Just Group set new targets after achieving its previous goals ahead of schedule? A: David Richardson, CEO, stated that the company has significantly exceeded its previous target of doubling profits in five years by achieving it in three. The focus now is on maintaining strong new business capabilities and market opportunities to grow earnings at an attractive rate from a higher base.