July 24, 2018 / 6:57 AM / 5 months ago

Just Group posts H1 sales beat, warns on capital impact of proposed rules

LONDON, July 24 (Reuters) - British specialist pensions provider Just Group on Tuesday posted a forecast-beating 62 percent increase in first-half sales of retirement products, driven by demand from companies to offload pension liabilities.

Just said so-called ‘defined benefit de-risking’ sales were up 143 percent to 718 million pounds ($939.14 million) in the six months to the end of June, beating a company supplied consensus forecast of 487 million pounds.

That in turn helped total retirement sales to hit 1.2 billion pounds, beating consensus for 930 million pounds.

Sales of Guaranteed Income for Life (GIfL) products to retail customers, meanwhile, rose 9 percent to 426 million pounds, while lifetime mortgage sales climbed 36 percent to 313 million pounds.

“These new business figures show that our strategy of focusing on attractive growth markets is working,” Chief Executive Rodney Cook said in a statement.

The company warned, however, that proposed changes to the rules governing the sale of lifetime mortgages by the Prudential Regulation Authority could dent its capital position if implemented as planned.

“The outcome will depend on the result of the consultation process. We, together with the industry, continue to work constructively with the PRA as part of the consultation and will update the market when appropriate,” Cook said.

$1 = 0.7645 pounds Reporting by Simon Jessop; Editing by Kirsten Donovan

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