Trading Statement

RNS Number : 1636U

Just Retirement Group PLC

14 October 2014

 



NEWS RELEASE 14 October 2014

JUST RETIREMENT GROUP PLC www.justretirementgroup.com

JUST RETIREMENT GROUP PLC

ANNOUNCES ITS LARGEST DEFINED BENEFIT DE-RISKING TRANSACTION

Specialist insurer Just Retirement today announces that it has now completed its largest Defined Benefit de-risking transaction, a Buy-in deal for £75m which was contracted in September. Until all the scheme's members have been informed of the particulars of the transaction, further details will not be disclosed, but we can confirm that:

·      Just Retirement is providing a bulk annuity contract to the scheme trustees to cover all pensioner members; and

·      This is our first completed transaction with the employee benefit consultant advising on the scheme

Tim Coulson, Director Defined Benefit Solutions, Just Retirement, commented:

"I am pleased to announce further success in the DB market. The scheme's liability duration is a good match for our mortgage assets and wider investment portfolio. I am delighted that the Group's financial strength and pricing know-how have enabled us to break into the next level of the DB de-risking market, and that we have further expanded our distribution footprint.

Rodney Cook, CEO of Just Retirement, commented:

"Tim Coulson and his strong and experienced team have delivered further good news, which we consider should be announced outside of our normal reporting cycle. This time we are disclosing a scheme which is twice the size of our previous largest deal. While this is lumpy business, at present the team is delivering strong momentum.

Although only a short time has passed since the Chancellor's announcement proposing reforms to the tax treatment of unused DC pension savings on death, there has been no impact on our subsequent trading in the IUA segment. Our average case size of £57,000 means that many of our retired customers are not caught by inheritance tax, or even income tax, but they do want a guaranteed lifetime income. Intermediaries are continuing to seek out the better rates we can offer due to our medical underwriting.

We are also pleased with HM Treasury's subsequent confirmation that Value Protection death benefits will share the same tax treatment as unused drawdown pensions.

Our progress in DB, the lack of disruption following the recent tax proposals, and HM Treasury's subsequent clarification that value protected annuities will not suffer any tax disadvantage relative to drawdown all underpin my confidence that we will meet our expectations for full year sales".

Note to editors: Defined benefit de-risking transactions, sometimes known as Bulk Purchase Annuities, allow the trustees and sponsors of Defined Benefit pension schemes to pay a premium to an insurer who in exchange assumes responsibility for paying the remaining pension obligations of the scheme, giving the scheme certainty over the liabilities concerned and improving the security for the scheme's members.

Enquiries

Investors / Analysts   James Pearce, Director of Investor Relations Telephone: [phone] [e-mail]

Media Stephen Lowe, Group External Affairs Director Telephone: [phone] [e-mail] Temple Bar Advisory Alex Child-Villiers William Barker Telephone: [phone]

A copy of this announcement will be available on Just Retirement's website www.justretirementgroup.com

JUST RETIREMENT GROUP PLC

GROUP COMMUNICATIONS

Vale House, Roebuck Close

Bancroft Road, Reigate

Surrey RH2 7RU

Forward looking statements disclaimer:

This announcement in relation to Just Retirement Group Plc and its subsidiaries (the 'Group') contains, and we may make other statements (verbal or otherwise) containing, forward-looking statements about the Group's current plans, goals and expectations relating to future financial conditions, performance, results, strategy and/or objectives.

Statements containing the words: 'believes', 'intends', 'expects', 'plans', 'seeks', 'targets', 'continues' and 'anticipates' or other words of similar meaning are forward-looking (although their absence does not mean that a statement is not forward-looking). Forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the Group's control. For example, certain insurance risk disclosures are dependent on the Group's choices about assumptions and models, which by their nature are estimates. As such, although the Group believes its expectations are based on reasonable assumptions, actual future gains and losses could differ materially from those that we have estimated.

Other factors which could cause actual results to differ materially from those estimated by forward-looking statements include but are not limited to: domestic and global economic and business conditions; asset prices; market related risks such as fluctuations in interest rates and exchange rates, and the performance of financial markets generally; the policies and actions of governmental and/or regulatory authorities, including, for example, new government initiatives related to the provision of retirement benefits or the costs of social care and the effect of the European Union's "Solvency II" requirements on the Group's capital maintenance requirements; the impact of inflation and deflation; market competition; changes in assumptions in pricing and reserving for insurance business (particularly with regard to mortality and morbidity trends, gender pricing and lapse rates); risks associated with arrangements with third parties, including joint ventures and distribution partners; inability of reinsurers to meet obligations or unavailability of reinsurance coverage; the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations in the jurisdictions in which the Group operates.

As a result, the Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set out in the forward-looking statements within this announcement. The forward-looking statements only speak as at the date of this document and the Group undertakes no obligation to update or change any of the forward-looking statements contained within this announcement or any other forward-looking statements it may make. Nothing in this announcement should be construed as a profit forecast.

 

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