Q1 New Business Results


 

TIDMJR. 
 
RNS Number : 8962A 
Just Retirement (Holdings) plc 
16 October 2009 
 

 
 
JUST RETIREMENT (HOLDINGS) PLC 
("JUST RETIREMENT" OR "THE COMPANY") 
 
 
FIRST QUARTER 2009/10 NEW BUSINESS FIGURES 
 
 
Just Retirement, the specialist UK life assurance group focusing on the 
provision of financial services to those at or in retirement, today announces 
its new business figures for the first quarter ended 30th September 2009. 
 
 
HIGHLIGHTS 
 
 
  *  Record total Q1 Group sales 
  *  Current trading remains positive for both products 
  *  Recommended acquisition of Just Retirement by Avalon Acquisitions Limited at 76p 
  per share in cash 
 
 
 
NEW BUSINESS RESULTS 
 
 
+----------------------------+----------------+---------------+-----------+ 
| GBPm (unaudited)           | 3 months ended |      3 months |  % change | 
|                            |   30 September |         ended |           | 
|                            |           2009 |  30 September |           | 
|                            |                |          2008 |           | 
|                            |                |               |           | 
+----------------------------+----------------+---------------+-----------+ 
| Annuity Policies           |          163.5 |         150.4 |      8.7% | 
+----------------------------+----------------+---------------+-----------+ 
| Equity Release Mortgage    |           50.1 |          33.1 |     51.4% | 
| Advances                   |                |               |           | 
+----------------------------+----------------+---------------+-----------+ 
| Group Total                |          213.6 |         183.5 |     16.4% | 
+----------------------------+----------------+---------------+-----------+ 
 
 
Mike Fuller, Chief Executive of Just Retirement, commented: 
 
 
"First quarter sales for the Group continue to demonstrate the resilience of 
Just Retirement's economic model. 
 
 
The first quarter has witnessed further change in our markets with lower but 
still present volatility in capital. Our ability to manage these changes and to 
generate sales growth is a credit to the Group. In addition, I am pleased to 
state that this growth is consistent with our commitment to profitability and 
capital strength. 
 
 
Current trading remains positive. Our competitive position within enhanced 
annuities is satisfactory and demand is growing. In equity release, while the 
market is somewhat subdued by continuing concerns over house price valuations, 
reduced competition has allowed the Group to improve market share." 
 
 
 
 
Enquiries 
+---------------------------------------+---------------------------------------+ 
| Just Retirement                       | Citigate Dewe Rogerson                | 
| +44 (0)1737 233396                    | +44 (0)20 7638 9571                   | 
| Mike Fuller, Chief Executive          | Michael Berkeley                      | 
| Simon Thomas, Finance Director        | Ged Brumby                            | 
| Shayne Deighton, Chief Actuary        | Lindsay Noton                         | 
| Scott Fulton, Investor Relations      |                                       | 
+---------------------------------------+---------------------------------------+ 
 
 
 
 
 
 
 
 
Annuities 
 
 
Just Retirement reports continuing recovery in annuity sales performance during 
the traditionally quieter first quarter of the financial year. Annuity sales of 
GBP163m represent the second highest quarter in its history, demonstrating the 
strength of the Group's proposition despite evidence of increased competitor 
interest in enhanced annuities during the period. 
 
 
Equity release 
 
 
Equity release mortgage advances of over GBP50m for the period are the second 
highest quarter since launch in 2005. This has been due to the strength of the 
funding model in the current market environment and stronger business activity 
levels during the summer holiday period. 
 
 
Current trading 
 
 
The pipeline for annuity sales remains healthy and with recent stock market 
improvements, Just Retirement believes that the prospects for the enhanced 
annuity market remain positive. The Group continues to expect some increased 
demand for equity release as the UK housing market recovers and, critically, 
seeks to exploit opportunities to improve market share as some of its 
competitors focus on other areas. 
 
 
 
Offer update 
 
 
On 25 September 2009, the board of Avalon Acquisitions Limited ("Avalon") and 
the Independent Directors of Just Retirement (Holdings) plc ("Just Retirement") 
announced that they had reached agreement on the terms of a recommended proposal 
for Avalon, a newly incorporated company owned by funds advised by Permira 
Advisers LLP ("Permira"), to acquire the entire issued and to be issued ordinary 
share capital of Just Retirement (the "Proposal"). 
 
 
A circular relating to the Proposal was posted to Just Retirement shareholders 
on 9th October 2009. The court and general meetings to consider the Proposal 
will be held at 4.30pm and 4.35pm respectively on 4th November 2009 at the 
offices of Macfarlanes LLP, 20 Cursitor Street, London EC4A 1LT. 
 
 
-ENDS- 
 
 
 
 
Notes to Editors 
 
 
Just Retirement (Holdings) plc was founded in 2004 by the current management; it 
listed on the Alternative Investment Market (AIM) in December 2006. The Group 
provides two products to those at or in retirement; enhanced annuities and 
equity release mortgages. 
 
 
Enhanced Annuities 
 
 
Annuities are contracts offered by the Group to people at retirement 
(annuitants) under which the Group undertakes to make a series of payments in 
the future in return for the immediate payment of a lump sum to the Group by the 
annuitant. This lump sum is provided by the annuitant's pension fund. The level 
of future payments is set according to the rates of return available within the 
capital markets and the expected longevity of the annuitant. In 2008, the total 
value of the annuity market in the UK was GBP11.6bn (source: Association of 
British Insurers "ABI"). 
 
 
Enhanced annuities are offered to people at retirement that may not live as long 
as average due to lifestyle (smoking, for example) or illness. Given the impact 
of these factors on longevity, it is possible for providers such as Just 
Retirement to offer "enhanced" annuity rates to those qualifying. In 2008, the 
total annual value of the enhanced annuity market in the UK was GBP1.8bn. 
 
 
Just Retirement does not provide pension fund management. As such, it can only 
offer annuity contracts to those utilising the Open Market Option (OMO). OMO 
allows pension fund holders to "shop around" for an annuity rather than take 
that provided by the incumbent pension fund provider. At the end of 2008, the 
total value of annuities bought using the OMO was GBP5.7bn. 
 
 
Equity Release Mortgages 
 
 
Equity release mortgages are advances made to homeowners in or at retirement. 
They fall into two main types: lifetime and reversion. 
 
 
Just Retirement only offers lifetime mortgages. This allows the homeowner to 
borrow a certain amount of capital against the value of their house. Although 
this advance carries a rate of interest, this is capitalised over the life of 
the mortgage. The loan, together with the accumulated interest, is repaid at the 
end of the mortgage. 
 
 
The equity release market is regulated by the FSA and is monitored by the 
industry body, Safe Home Income Plans (SHIP). The latter estimates that the 
total UK market for equity release is GBP1.2bn per annum. 
 
 
 
 
 
 
Quarterly sales; 2007 - 2009 
+--------------------------------------------------------------------------------------------+ 
| 2007/8                              2008/9                2009/10                          | 
| Q1       Q2       Q3       Q4       Q1       Q2       Q3       Q4        Q1                | 
| Annuity     151.5    161.6    147.6    143.8    150.4    121.7    127.5    191.2     163.5 | 
| policies                                                                                   | 
| Equity       39.3     34.6     37.1     48.0     33.1     48.7     37.4     43.7     50.1  | 
| release                                                                                    | 
| mortgages                                                                                  | 
| Group       190.8    196.2    184.7    191.8    183.5    170.4    164.9    234.9     213.6 | 
| total                                                                                      | 
|                                                                                            | 
+--------------------------------------------------------------------------------------------+ 
|                                                                                            | 
+--------------------------------------------------------------------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 QRFGUGWCUUPBUAQ
Just Retire. (LSE:JR.)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024