Just Group (JUST) H1 2025 earnings summary

Executive summary

• Underlying operating profit for H1 2025 was £192m, down 23% year-over-year, with underlying EPS at 13.8p and a 20% increase in interim dividend to 0.84p per share.

• Tangible net asset value per share grew to 267p, up from 254p at year-end 2024 and 41% over 2.5 years.

• New business premiums reached £2.2bn, with DB sales at £1.6bn and retail sales at £0.5bn, both down 13% year-over-year.

• Interim dividend of 0.84p per share declared, reflecting confidence in business fundamentals.

• A recommended cash offer by Brookfield Wealth Solutions at 220p per share was announced post-period.

Financial highlights

• IFRS underlying operating profit declined 23% year-over-year to £192m, with underlying operating EPS down to 13.8p from 18.0p.

• Adjusted profit before tax was £217m, down from £267m in H1 2024; IFRS profit before tax was £65m.

• Return on equity (annualised) was 10.7%, down from 15.6% in H1 2024.

• Solvency II capital coverage ratio remained robust at 198%.

• New business margin declined to 7.5% from 9.0% year-over-year, primarily due to tighter credit spreads.

Outlook and guidance

• Targeting a return on equity greater than 12% and new business strain below 2.5%.

• Strong sales pipeline for H2 2025, with £0.4bn of DB business written or exclusive as of July.

• Management expects a rebound in DB sales and continued growth in retail, supported by structural market trends.

• Cash generation expected to grow in line with asset growth from 2025 onwards.

• Dividend expected to grow over time, supported by a resilient capital base and low-strain business model.