Just Group has reported an 85 per cent increase in profits, driven by an 88 per cent growth in new business profit, its half year results have revealed.
The group’s operating profits grew from £67.2m to £124.4m, partly down to a 64 per cent in retirement income sales and partly down to a growth in margin from 8.9 per cent to 10.2 per cent, compared to H1 2017.
Retirement income sales totalled £1.18bn as at 30 June 2018, up from the £719.6m recorded over the same period last year.
Just Group CEO, Rodney Cook said: “Exceptional sales growth, new business profit growth and adjusted operating profit growth are testament to our financial discipline and our Group capabilities. They show that our strategy of focusing on attractive growth markets is working.
"The parts of the retirement market that we operate in are experiencing positive momentum and have good long-term prospects. The DB market has accelerated this year as the de-risking process has become a mainstream solution. Shopping around for retirement income has been further encouraged by a number of Financial Conduct Authority initiatives.”
Furthermore, Just Group said its defined benefit sales hit £718.1m at the end of H1 2018, a 143 per cent increase on the £295.6m achieved over the first six months of 2017.
Responding to the results, Hargreaves Lansdowne senior pensions analyst, Nathan Long, tweeted: Just Group results out today, reiterate confidence in the market for guaranteed retirement income. Flags the importance of FCA shopping around intervention launched in March 2018.