Company Announcements

16 May 2019

JUST GROUP plc

BUSINESS UPDATE FOR THE 3 MONTHS ENDED 31 MARCH 2019

FOCUS ON CAPITAL DISCIPLINE

Just Group plc ("Just", the "Group") announces a business update for the 3 months ended 31 March 2019.

Highlights

David Richardson, Interim Group Chief Executive, said:

"Today's update reflects our disciplined approach to the management of our capital in the new regulatory regime. Our GIfL price increases and DB pricing standards have been implemented rigorously, ensuring that we deliver to shareholders a new business internal rate of return in line with our targeted mid-teen levels. The continued growth in our markets gives us confidence that there remains a considerable opportunity to deploy capital in a disciplined and profitable manner. Although it was a quiet start to the year, DB transaction volumes in Q2 have been good. Given the strength of our pipeline, we remain comfortable that DB sales for the year will be similar to the annualised rate seen in H218.

Our capital position has been much improved by the £375m raised in March, and we are absolutely focussed on achieving capital neutrality by 2022. We have a plan in place to ensure we achieve this target, which includes a number of actions we will be taking over the course of this year. These include a renewed focus on cost control, the closure of loss making operations such as the US, reductions in new business LTM backing ratios and a shift towards more capital efficient assets."

New business sales by quarter¹ (£m)

Notes

1.     Numbers in table subject to rounding.

2.     Protection closed to new business in Q4 17. Q1 18 Protection new business sales represented applications in the pipeline. 

A copy of this announcement will be available on the Group's website www.justgroupplc.co.uk

JUST GROUP PLC

GROUP COMMUNICATIONS

Vale House, Roebuck Close

Bancroft Road, Reigate

Surrey RH2 7RU

This announcement may contain and Just may make verbal statements containing "forward-looking statements" with respect to certain of its plans and current goals and expectations relating to its future financial condition, performance, strategic initiatives, objectives and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Just's control, including amongst other things, United Kingdom domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, the effect of competition, inflation, deflation, the timing effect and other uncertainties of future acquisitions or combinations within relevant industries, the effect of tax and other legislation and other regulations in the jurisdictions in which Just and its respective affiliates operate, the effect of volatility in the equity, capital and credit markets on Just's profitability and ability to access capital and credit, a decline in the Group's credit ratings; the effect of operational risks; and the loss of key personnel.  As a result, the actual future financial condition, performance and results of Just may differ materially from the plans, goals and expectations set forth in any forward-looking statements.  Any forward-looking statements made in this announcement by or on behalf of Just speak only as of the date they are made.  Except as required by applicable law or regulation, Just expressly disclaims any obligation or undertaking to publish any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.