Just Group Share Piece Rallied 9.33% on Upbeat FY 2023 Profits

The Just Group PLC (LON: JUST) share price rallied 9.33% after the company released its financial results for the year ended 31 December 2023. The company witnessed a massive 47% increase in underlying operating profit, reaching £377 million compared to £257 million in the previous year. Substantial gains in new and existing business profits propelled this growth.

Sales in Retirement Income surged by 24%, amounting to £3.9 billion, up from £3.3 billion the prior year. The combination of disciplined pricing and selective risk assessment in vibrant markets contributed to an improved margin of 9.1%, up from 8.5%, facilitating a 33% rise in new business profits to £355 million.

As the company kicks off 2024, momentum from 2023 continues to propel it forward. The Defined Benefit (DB) market experienced an unprecedented year in 2023, with transactions reaching approximately £50 billion, while the Guaranteed Income for Life (GIfL) market saw its best performance in a decade, expanding by 46% to £5.3 billion.

The company’s Solvency II and IFRS metrics demonstrate robust health and resilience regarding financial stability. Its capital coverage ratio stood at 197%, with reduced sensitivity to interest rates thanks to strategic gains locking and a diversified investment portfolio that lessens property sensitivity.

The adjusted profit before taxes soared to £520 million, reversing the previous year's adjusted loss before taxes of £167 million. This improvement was driven by the robust increase in underlying operating profit, positive adjustments in longevity assumptions, and economic profits.

On the shareholder value front, Just Group has enhanced its return on equity to 13.5% and increased its tangible net assets per share to 224p, up from last year's 10.3% and 190p, respectively. This improvement has prompted the company to raise its target return on equity from over 10% to more than 12%.

Additionally, the Group is announcing a dividend of 2.08p per share, marking a 20% increase and reflecting its confidence in the robust fundamentals and bright prospects of the business.

Looking ahead, Just Group is optimistic about maintaining a 15% growth rate in underlying operating profit from the already elevated base. As such, the 2024 underlying operating profit is projected to at least double the £211 million recorded in 2021, showcasing its commitment to continued financial success and shareholder value.

Just Group share price. 

The Just Group share price rallied 9.33% to trade at 97.30p from Thursday’s closing price of 89.00p.