SALE OF A PORTFOLIO OF LIFETIME MORTGAGESSource: RNS
22 February 2022
JUST GROUP plc
SALE OF A PORTFOLIO OF LIFETIME MORTGAGES
Just Group plc ("Just", the "Group") announces the sale of a portfolio of lifetime mortgages ("LTM") to Rothesay Life plc ("Rothesay").
Today Just announces that it has completed the sale of a portfolio of LTM to Rothesay, with a current outstanding loan balance of £537m and an IFRS value as at 31 December 2021 of £772m. The LTM assets being sold form part of the investments used to back the insurance liabilities of the Group. The consideration is c£687m, payable in cash.
The proceeds received will be reinvested in a mixture of other fixed interest assets to back the insurance liabilities of the Group. The sale will result in an IFRS net of tax loss of c£35m which includes the impact on the insurance liabilities resulting from the expected new asset mix.
This is the third sale by the Group of an LTM portfolio over the last fifteen months and further reduces Just's exposure to UK residential property risk. This completes the Group's programme of LTM portfolio sales.
The Group will announce results for the year ending 31 December 2021 on 10 March 2022 and will update the market on its Solvency II position and reduced sensitivity to moves in the UK property market at that time. The impact of the sale on the Group's Solvency II capital ratio will be broadly neutral.
David Richardson, Group Chief Executive, said:
"I am very pleased to have completed our third LTM portfolio sale, which, together with the three NNEG hedges we have completed and the reduction in new business LTM backing ratio we have achieved over the last two years, leaves our solvency position much more resilient to stresses in the UK housing market. This, alongside both our improved capital base and organic capital generation, has established a strong foundation for the business, from which to deliver profitable and sustainable growth."
Investors / Analysts
Alistair Smith, Investor Relations
Telephone: +44 (0) 1737 232 792
Paul Kelly, Investor Relations
Telephone: +44 (0) 20 7444 8127
Stephen Lowe, Group Communications Director
Telephone: +44 (0) 1737 827 301
Anthony Marlowe, Head of Communications & Public Affairs
Telephone: +44 (0)7912 550184 firstname.lastname@example.org
Just and Rothesay
Temple Bar Advisory
Telephone: +44 (0) 20 7183 1190
A copy of this announcement will be available on the Group's website www.justgroupplc.co.uk
JUST GROUP PLC
Surrey RH2 7RP