CEO cites quieter DB market, announces 20% dividend increase amid strategic investments for future growth
LONDON: Just Group PLC, a specialist in retirement solutions, reported mixed financial results for the first half of 2025, with a dip in underlying operating profit and sales attributed to a quieter market at the start of the year.
However, the company expressed confidence in a strong rebound in the second half, citing a robust pipeline of new business and continued investment in growth.
The company’s underlying operating profit dropped to £192 million for the six months ended June 30, 2025, a 23% decrease from the £249 million reported in the same period in 2024.
This was primarily due to lower new business margins on reduced sales, though this was partially offset by an increase in recurring in-force profit. Retirement Income sales also saw a 13% decline, totaling £2.2 billion compared to £2.5 billion in the first half of 2024.
Despite the downturn, Just Group’s leadership remains optibmistic. “I am pleased with the performance in the first six months of 2025, particularly given the quieter level of transactions in the DB market at the beginning of the year,” said David Richardson, Group Chief Executive Officer. “With multiple opportunities available to us, the second half of the year is already shaping up to deliver a strong six months of sales for the Group.”
Richardson highlighted the company’s discipline in execution and its ongoing investment in the business to support future growth. He emphasized that the company is “putting all the building blocks in place to build on the substantial progress we’ve delivered.”
A key factor in the performance was the Defined Benefit (DB) market, which was slower than in the previous year. DB sales for the company were down 13% to £1.6 billion, but Just Group noted this “outperformed a slower market that is expected to rebound strongly in the second half.” The company maintained its leadership position in the small scheme market, completing 61 transactions, up from 55 in the first half of 2024.
New business margins, a key indicator of profitability, remained “attractive” at 7.5%, a decrease from 9.0% in the first half of 2024. The company attributed this to tighter credit spreads, increased competition, business mix changes, and lower volumes. However, Just Group’s strength in its DB small scheme proposition and its medical underwriting capabilities for Guaranteed Income for Life (GIfL) products helped support this margin.
Looking ahead, Just Group has a strong outlook for the second half of 2025. As of the end of July, the company had already secured or was in exclusive negotiations for £0.4 billion in DB business.
The pipeline for small, medium, and large transactions is robust, reflecting growing demand as companies seek to offload complex pension risk to insurers.
The company’s capital position also remains strong, with a Solvency II capital coverage ratio of 198%, down slightly from 204% at the end of 2024. This is a key metric, as it indicates the company’s financial resilience and ability to meet its long-term obligations.
The company also announced a dividend of 0.84 pence per share, representing a 20% growth, which Richardson said reflects the company’s confidence in its “strong fundamentals and future prospects.” He reiterated that Just Group’s robust capital position and reduced sensitivities to market risks allow it to “sustainably fund our ambitious growth plans from our own means.”