Just Group H1 new business sales rise 3%

Just Group said first half new business sales rose 3% driven by a 16% rise in retirement income products to £720m.

Defined benefit de-risking sales rose 80% year on year to £296m.

Chief executive Rodney Cook said the company had reached its £40m cost synergy target more than a year ahead of plan and “we will now strive to exceed the updated target of £45m in savings”.

“We expect our accessible guaranteed for life market to grow over the medium to longer term, driven by demographics, individual customer defined benefit transfers, and a continued expansion of the open market,” he said.

“The defined benefit market is set for continued expansion as increasing numbers of trustees seek to de-risk their pension liabilities. Lifetime mortgages remain very positive as property rich, but pension poorer individuals prepare to retire.”

“Our focus remains on improving shareholder profits and returns, not on volume growth for its own sake. We will continue to take advantage of market growth by refining our risk selection and asset/liability management.”

“We remain comfortable with full year expectations, albeit with more moderate volume growth and higher margins than previously expected.”