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Just Group posts record 35% rise in 2017 earnings, with merged annuity provider helped by synergy savings

Published: 20:09 15 Mar 2018 AEDT

Retirement planning
Just Group said it achieved a cost synergy run rate of £52mln, one year ahead of schedule and 30% above its initial target

Just Group PLC (LON:JUST) saw its shares rise 2% in early trading on Thursday after the merged annuity provider posted a record 35% rise in 2017 earnings helped by cost synergy savings.

The FTSE 250 group – formed in 2016 by the merger of Just Retirement and Partnership Group – reported 2017 adjusted operating profits of £220.6mln, up from a pro-forma £163.7mln a year earlier, topping analysts forecast thanks to lower expenses and pricing discipline.

READ: Prudential to spin-off M&G Prudential and sell £12bn of UK annuity portfolio

The firm saw its new business profit increase by 37% to £170mln as its margin rose to 9.0% from 6.8%, while retirement Income sales rose by 4% compared to 2016’s pro forma level.

Just Group said it achieved a cost synergy run rate of £52mln, one year ahead of schedule and 30% above its initial target, with the merger now substantially complete.

Rodney Cook, Just’s group chief executive officer, said the firm’s “increased financial flexibility positions us well to take advantage of the opportunities in our growth markets.”

He concluded: “The results in 2017 reinforce our belief that we have a sustainable business model in growing markets which will deliver well into the future.”

The company is proposing a final dividend of 2.55p per share, up 6% on a year earlier, making a total payout of 3.72p or the year, also up 6%.

In early morning trading, Just Group shares were 2.3% higher at 138.10p.

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