Just Group DB de-risking sales rise by 91%

Just Group’s defined benefit de-risking sales for the first nine months of 2018 increased by 91 per cent year-on-year to £1.08bn, according to its latest business update.

This was reportedly due to the bouyant de-risking market and Just being “increasingly selective to maximise returns”.

Between July and September 2018, DB de-risking sales reached £363m, an increase of 35 per cent over the same three months in 2017.

Retirement income sales also increased in comparison to the first nine months of 2017, up by 44 per cent to £1.76bn, as of 30 September 2018, driven by “the continued growth in DB de-risking sales”.

Just group chief executive, Rodney Cook, commented: “I am pleased to report another excellent quarter, demonstrating the strength of Just’s positioning and strategy. The markets in which we operate are generally buoyant. Customer appetite for lifetime mortgages is increasing and supply from insurers is growing, all helping to stimulate strong market growth.”

The report revealed that Just’s lifetime mortgage advances increased by 32 per cent over the same period, to £483m, which is in line with the robust market growth.

Guaranteed income for life sales were also up, but only by 3 per cent to £627m, as volumes have slowed as price increased have taken effect.

Just has submitted its response to consultation paper on equity release mortgages and is awaiting the publication of the Prudential Regulation Authority’s (PRA) final supervisory statement. Just’s board is preparing for a wide range of possible outcomes and remains in dialogue with the PRA.

Cook added: “Consultation paper 13/18 is for us primarily a back book issue. Just has no further clarity on the outcome of the consultation but has continued to work hard to make detailed plans for a range of potential outcomes. We welcome the announcement by the PRA last week that the implementation date for the final proposals will not be before 31 December 2019.”

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