Just Group (JUST) H2 2025 earnings summary

Executive summary

• Achieved underlying operating profit of £305m for FY25, reflecting pricing discipline amid increased competition and tighter credit spreads.

• Tangible Net Asset Value (TNAV) grew 37% over three years to £2.7bn, supported by a hedging strategy minimizing interest rate volatility.

• New business premiums totaled £4.3bn, with a 2.7% new business strain and a 9% return on equity.

• Maintained strong market positioning in both DB and retail retirement markets, with structural growth drivers intact.

Financial highlights

• Underlying operating profit declined from £504m in FY23 to £305m in FY25, mainly due to lower new business margins and volumes.

• IFRS 17 profit before tax was a loss of £118m, impacted by one-off non-operating items and strategic expenditure.

• Solvency II capital coverage ratio decreased to 179% from 204%, driven by non-recurring items and tactical investment decisions.

• Cash generation increased 9% year-over-year to £130m, despite higher new business strain.

Outlook and guidance

• Long-term growth opportunities remain robust in both DB and retail markets, with £1tn of DB liabilities and £1tn of retail decumulation flows projected over the next decade.

• Targeting continued compounding growth in value and maintaining pricing discipline in competitive markets.