Just Group has reported a 17 per cent increase in its retirement income sales during 2022, with the surge driven by defined benefit de-risking sales.
Sales reached £3.1bn in 2022 according to a business update from the group today (January 26), up from £2.6bn in 2021.
Just said it expects to deliver on its target of 15 per cent growth in underlying operating profit per year, on average, over the medium term as a result of its success in the growing DB market, pricing discipline and risk selection and its increasing illiquid investment origination capabilities.
DB sales for the group increased by 33 per cent across 2022 to £2.6bn.
It completed 56 DB transactions during the year, up from 29 in 2021, and noted that this was aided by its proprietary bulk quotation service and repeat business.
It said it expects to carry this growth momentum into 2023.
Just Group chief executive David Richardson outlined that over the past three years the group has delivered 18 per cent average sales growth per year.
“We have significant untapped potential and a tremendous opportunity to achieve further material growth in the rapidly expanding DB market,” he said.
“Our proprietary bulk quotation service and repeat business programme help to overcome human capital constraints in the industry and therefore increase access to competitive DB pricing for many more pension schemes. The growth in our capacity to source illiquid investments and broadening of our reinsurance arrangements mean we are well positioned to transact on larger deals,” Richardson added.
He added that the strong growth level was achieved while delivering “continued outperformance in new business capital strain, which, together with our robust capital position, allows us to take advantage of the structural growth opportunities available to us.”
The group expects new business strain of around 2 per cent.
jane.matthews@ft.com
