Just Group (JUST) H2 2024 earnings summary

Executive summary

• Delivered record sales and profits, exceeding financial and operational targets for FY 2024, with a robust capital base and increased shareholder value focus.

• Profits more than doubled in three years, surpassing the five-year target set in 2022.

• Achieved strong growth in both Defined Benefit (DB) and retail markets, with significant market share gains and record new business premiums.

• Maintained a robust solvency position and continued to invest in talent, technology, and asset origination capabilities.

• Positioned to benefit from long-term demographic and structural growth drivers in retirement markets.

Financial highlights

• Operating profit up 34% to £504 million; operating EPS at 36.3p.

• New business sales/premiums up 36% to £5.3 billion; total DB premiums at £5.4 billion, representing over 11% market share.

• Tangible net asset value per share increased to 254p, up 34% over two years.

• Return on equity reached a record 15.3%, above the 12% target.

• Dividend per share increased by 20% to 2.5p, reflecting business confidence and future prospects.

Outlook and guidance

• Targeting continued double-digit growth in underlying operating profit, with a medium-term goal to double profit in five years from the 2021 baseline.

• Confident in ability to grow earnings at attractive rates from a higher base; return on equity expected to remain above 12%.

• No new explicit profit growth target set after exceeding previous guidance.

• DB market pipeline remains strong, with growth expected to be weighted toward the second half of the year.

• Positioned for long-term growth in both DB and retail decumulation markets, each with c.£1tn opportunity over the next decade.