Just Group first-half profits drop 23%
Retirement products provider Just Group Plc posted a 23% drop in first-half underlying operating profit on Thursday, citing lower new business margins on lower sales.
In the six months to 30 June, underlying operating profit declined to £192m from £249m. This was "driven by lower new business margins on lower sales, offset by higher recurring in-force profit", it said.
Adjusted pre-tax profit fell to £217m from £267m and retirement income sales declined to £2.2bn from £2.5bn in the same period a year earlier.
Just Group said defined benefit sales were down 13% to £1.6bn but have outperformed a slower market that is expected to bounce back strongly in the second half.
The company, which agreed last month to be bought by Canada's Brookfield Wealth Solutions for £2.4bn, said new business margins remain "attractive" at 7.5%, down from 9% in the first half of 2024 and 8.4% in the second half.
The reduction was put down to tighter spreads, increased competition, business mix and lower volumes.
Chief executive David Richardson said: "I am pleased with the performance in the first six months of 2025, particularly given the quieter level of transactions in the DB market at the beginning of the year. With multiple opportunities available to us, the second half of the year is already shaping up to deliver a strong six months of sales for the group.
"We remain disciplined, continue to execute strongly and are investing in the business to support our future growth. We are putting all the building blocks in place to build on the substantial progress we've delivered.
"We operate in fundamentally attractive markets, and are confident in our ability to consistently compound value."
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