Just Group plc has reported its financial results for the year ended December 31, 2024, highlighting growth in underlying operating profit, increased retirement income sales, and an improved capital coverage ratio.
The group’s underlying operating profit rose 34% to £504 million, compared to £377 million in 2023. The increase was attributed to growth in new business sales, higher recurring in-force profit, and operational scale.
Retirement income sales grew 36% to £5.3 billion, up from £3.9 billion in 2023. New business margins were slightly lower at 8.7%, compared to 9.1% the previous year, which the group attributed to changes in its business mix. New business profits increased 30% to £460 million, compared to £355 million in 2023.
Just Group reported a proforma capital coverage ratio of 204% as of December 31, 2024, up from 197% at year-end 2023. The group noted that interest rate and residential property sensitivities have continued to decline due to management actions and increased investment portfolio diversification.
In 2023, the company reported a net income of £129 million, a substantial turnaround from a £244.7 million loss in the previous year.
The previous year also saw Just Group acquiring a stake in 55/Redefined, a company specialising in supporting employees over the age of 50.
New business strain for the year was 1.3%, compared to 0.9% in 2023, remaining well within the group’s target of below 2.5% of premium. Cash generation before new business strain rose to £119 million, up from £111 million in 2023. The group said that sustainable growth is supported by a low capital intensity new business model, management actions, and access to surplus capital.
Adjusted profit before tax stood at £482 million, compared to £520 million the previous year. The group stated that strong underlying profit was offset by lower non-operating items. Of the £482 million, £369 million was deferred to the contractual service margin (CSM), resulting in IFRS profit before tax of £113 million, down from £172 million in 2023.
Return on equity improved to 15.3%, up from 13.5% the previous year, while tangible net assets per share increased to 254p, compared to 224p at the end of 2023. The group described this as a growing store of long-term value.
The board has proposed a dividend of 2.5p per share for 2024, representing a 20% increase.
David Richardson (pictured above), group chief executive officer, said Just Group committed three years ago to doubling profits over five years, and has exceeded that target within three years, creating substantial shareholder value in the process.
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