Just Annual Report and Accounts 2024

BIGGER BETTER BRIGHTER

JUST GROUP PLC ANNUAL REPORT AND ACCOUNTS 2024

Just Group plc | Annual Report and Accounts 2024

Our Purpose

WE HELP PEOPLE ACHIEVE A BETTER LATER LIFE.

INDIVIDUALS We provide guaranteed income for life to deliver security and peace of mind for our customers and we provide regulated advice, guidance and information services to help people make the most of their pensions and other savings.

We believe that every decision we make and every action we take should help us fulfil our purpose.

PENSION SCHEME TRUSTEES We provide improved security of income for members of defined benefit pension schemes by transferring the risk to Just.

APPROVAL The Strategic Report was approved by the Board of Directors on 6 March 2025 and signed on its behalf by:

JOHN HASTINGS-BASS Chair

Governance Financial Statements

Strategic Report

STRATEGIC REPORT 1 Our purpose 2 Investment case 3

GOveRNANCe FINANCIAL STATeMeNTS

JUST GROUP PLC | ANNUAL RePORT AND ACCOUNTS 2024

STRATEGIC REPORT

our strategy in action

A RECORD YEAR FOR OUR DEFINED BENEFIT DE-RISKING BUSINESS Our defined benefit de-risking business exemplifies the spirit of this year’s Annual Report. We’ve become bigger, better and the future is bright. 2024 was a record year on every level.

Bedrock of Britain Supporting small and medium size schemes is in our DNA and we are passionate about helping them to access the security that de-risking with an insurer delivers. We are proud to have worked with some of the great organisations that are part of the heritage of Britain covering a spectrum of industries – such as S.A. Brain & Co (brewery), Wednesbury (copper tubing manufacturer), St.Modwen (sustainable house builder) and First Milk (British farming co-operative) to name a few. De-risking their DB pension schemes means that these businesses can focus on growing their business, their contribution to the economy and their communities, with legacy DB obligations and the associated risks now managed by Just. A reputation for excellence 2024 also saw us complete our third largest transaction to date, a £510m Buy-in with a global engineering company and pioneers in creating technology for communication. This was our third transaction with the company. When trustees choose to contract with you to deliver further services it provides a strong sense of pride inside Just. It’s a clear signal that we are trusted to deliver outstanding service and value to members. Member first When it comes to innovation – our north star is providing the very best experience we can for our members. At the start of the year, we carried out a piece of research with over 1,500 members of DB schemes to surface how they feel about planning and managing their retirement and how that could inform how we support them. The headline conclusion was that none of us should assume that just because someone has a gold standard DB pension it means that they don’t need support and help as they approach, and journey through retirement. In particular, for those approaching retirement they could be in a position where their DB pension is only one of perhaps four or more retirement savings pots they have in place. We identified that for schemes moving to Buy-out, those members may not have access to help, support and advice. To close this gap, we’ve launched a member advice service in conjunction with our sister company HUB Pension Consulting. Another example of Just becoming better for its members.

Financial and operational highlights

4 6 8

At a glance

Largest ever transaction – £1.8bn Buy-in for G4S Highest value of Total DB De-risking sales – £5.4bn Highest number of transactions completed – 129 The most de-risking transactions completed in a single year by an insurer Highest number of schemes using Beacon, our successful bulk quotation and price monitoring service – over 350.

Cumulatively, we’ve completed over 500 transactions since we launched in 2012, that’s one-in-four deals across the entire market. We are providing outstanding support to pension schemes of all shapes and sizes – big ones, small ones and everything in between. The market has never been brighter and more vibrant, and we have responded with ambition, innovation, focus and discipline to deliver a record-breaking year.

Chair’s statement

Chief Executive Officer’s statement

10 Market context 14 Business model 16 Strategic priorities

BIGGER. We have increased our scale so we can help more trustees, sponsors and pension scheme members.

BETTER. We’ve invested to add new capabilities into our business, from new talented colleagues to leading edge technology so that we can provide solutions to meet the needs of all schemes.

JUST GROUP | TOTAL DB DE-RISKING SALES

150

120

BRIGHTER. We’re innovating and ambitious to help more members so that we may fulfil our purpose. This requires us to think differently

18 Our strategy in action: Case studies 26 Financial key performance indicators 28 Business review 40 Sustainability: TCFD 54 Colleagues and culture 58 Relationships with stakeholders 61 Section 172 statement 62 Non-financial and sustainability information statement 64 Risk management 66 Principal risks and uncertainties

and push ourselves to break new ground as the results demonstrate this year.

Read more about our biggest deal to date on p20

Total DB (£bn)

Number of transactions

Bigger. BETTER. BRIGHTER. explained p18 – 19

GOVERNANCE REPORT 70 Chair’s Governance overview

72 Board of Directors 76 Senior leadership 78 Governance in operation 94 Nomination and Governance Committee report 98 Group Audit Committee report 104 Group Risk and Compliance Committee report 108 Directors’ Remuneration report 123 Directors’ report 128 Directors’ responsibilities FINANCIAL STATEMENTS 129 Independent auditors’ report 139 Consolidated financial statements 143 Notes to the consolidated financial statements 207 Company financial statements 210 Notes to the Company financial statements 214 Additional information 216 Information for shareholders 218 Directors and advisers 219 Glossary and abbreviations

HOMEOWNERS We provide the resources to improve the later life of homeowners and their families.

COMPANIES We provide advisory, technology and customer services to help UK companies with retirement- focused solutions to meet the needs of their customers and clients in later life.

All Just Group plc regulatory announcements, shareholder information and news releases can be found on our Group website, www.justgroupplc.co.uk/investors

Just Group plc | Annual Report and Accounts 2024

Investment Case

GROWTH, INNOVATION AND DELIVERY Deploying the capabilities of our highly

effective new business franchise to create value from leadership positions in attractive growth segments of the UK retirement income market.

WE HELP PEOPLE ACHIEVE A BETTER LATER LIFE

CONSISTENT DELIVERY AND DISCIPLINE

Just has a compelling, clear purpose. We help people achieve a better later life, by providing competitive products, financial advice, guidance and services to those approaching, at and in- retirement. We deliver value for shareholders by putting customers first and meeting their needs. Read more on p5

Over the last five years we have developed a strong track record of delivery and have consistently met or exceeded our profit targets. We operate a sustainable business model, where we fund new business from our own means and have progressively improved the sensitivity, quality and resilience of our capital base. The Solvency II capital coverage ratio of 204% (proforma, estimated) is robust and provides a platform to fund our ambitious growth plans. Read more on p26

INCREASING SHAREHOLDER VALUE

We are committed to consistently growing the value of the business. In 2024, we delivered underlying earnings of 36.3p per share, a 15.3% return on equity (“RoE”) and tangible net asset value (“TNAV”) per share up 34% or 64p to 254p since the end of 2022. Our operating return on equity target of greater than 12% shows the confidence we have in sustainably increasing this value over time. Read more on p26 EXCEEDING OUR TARGETS AND DELIVERING attractive GROWTH in the future Our priority is to deliver profitable and sustainable growth. We have exceeded our profit growth pledge in each of the last three years and substantially exceeded a doubling of the underlying operating profit achieved in 2021. We are confident in our ability to continue delivering attractive underlying operating profit growth. Read more on p29

UNIQUELY POSITIONED IN ATTRACTIVE GROWING RETIREMENT MARKETS

Around £1tn of defined benefit pension scheme liabilities remain available for de-risking and transfers of £50bn per annum to insurers are projected over the next decade. Helped by more normalised long- term interest rates, and as the population ages with larger defined contribution pension pots, the retail markets are projected to grow sustainably over time. Read more on p10

We have consistently exceeded the commitments we have made and we’re more optimistic than ever about the future for Just.” David Richardson Group Chief Executive Officer

GROWING SHARE THROUGH INNOVATION AND POSITIVE DISRUPTION

We increase our share in these growing markets through constant innovation – seeking to positively disrupt the markets where we choose to participate. By delivering better outcomes for customers, we also deliver increasing value for shareholders. Read more on p14

Governance Financial Statements

Strategic Report

Financial and operational highlights

KEY PERFORMANCE INDICATORS

NEW BUSINESS PROFIT 1

TANGIBLE NET ASSET VALUE PER SHARE 1 254 p 2023: 224p, up 30p

RETIREMENT INCOME SALES (SHAREHOLDER FUNDED) 1

£ 5.3 bn 2023: £3.9bn, up 36%

£ 460 m 2023: £355m, up 30%

RETURN ON EQUITY 1

UNDERLYING OPERATING PROFIT 1 £504 m 2023: £377m, up 34% Equivalent to Underlying EPS³ 36 P 2023: 28p SOLVENCY II CAPITAL COVERAGE RATIO (PROFORMA) 1,2 204% 197% at 31 December 2023

IFRS PROFIT BEFORE TAX

15.3% 13.5% at 31 December 2023

£113 m 2023: £172m, down 34%

NEW BUSINESS STRAIN 1

UNDERLYING ORGANIC CAPITAL GENERATION 1 £ 23 m £57m at 31 December 2023

1.3 % 2023: 0.9%

FINANCIAL STRENGTH AND OTHER INDICATORS

A + FITCH INSURER FINANCIAL STRENGTH RATING for Just Retirement Limited (2023: A+)

A Fitch issuer default rating for Just Group plc (2023: A)

AWARDED FURTHER RECOGNITION FOR OUTSTANDING SERVICE

FINANCIAL ADVISER: 5 Star service award (Pensions and Protection)

5 Star service award (Mortgages)

1 A lternative performance measure (“APM”) (unaudited, the explanations and definitions of APMs can be found in the glossary). Reconciliations are included in the Business Review for: New business strain, Underlying organic capital generation and Solvency coverage ratio which are reconciled to Solvency II excess own funds; New business profit and Return on equity and Underlying EPS which are both based on Underlying operating profit, are reconciled to IFRS profit before tax; and Tangible net asset value is reconciled to IFRS total equity. Retirement Income sales (shareholder funded) are reconciled to premium cash flows in note 2 to the Consolidated financial statements. 2 S olvency capital coverage ratios as at 31 December 2024 and 31 December 2023 include a recalculation of transitional measures on technical provisions (“TMTP”) as at the respective dates. The estimated 2024 ratio is presented after the impact of the pre-funded repayment of Tier 3 debt in February 2025. The reconciliation to the regulatory capital position is explained in note 30. 3 Underlying EPS, an APM (unaudited, the explanation and definition can be found in the glossary).

Just Group plc | Annual Report and Accounts 2024

At a glance

Leaders in our markets. We positively disrupt markets where we can become a leader and deliver great outcomes for customers enabling us to create value for shareholders.

TRUSTEES AND SCHEME SPONSORS: PROVIDING MEMBER SECURITY AND DE-RISKING PENSION LIABILITIES Defined benefit pension schemes de-risking their liabilities by securing member benefits with an insurance contract. £ 1 trillion Addressable market

INDIVIDUALS: PROVIDING RETIREMENT INCOME People who have built up pension savings throughout their career and want a guaranteed income, flexible income, or a combination in retirement. > £ 1 trillion Market value of defined contribution pension savings

WE ARE A SPECIALIST IN OUR CHOSEN MARKETS, SERVING FOUR

DISTINCT GROUPS…

HOMEOWNERS: ACCESSING PROPERTY WEALTH People aged 55+ who want to access wealth locked up in their property. > £ 3.5 trillion Property wealth owned by people aged 55 +

CORPORATE CLIENTS: SOLVING PROBLEMS FOR COMPANIES We develop scalable retirement-focused solutions for banks, building societies, life assurance companies, pension scheme trustees, other corporate clients and for their customers, clients and members. retirement- focused solutions

Governance Financial Statements

Strategic Report

...WITH PRODUCTS AND SERVICES

Competitive position: A leader

Developing

SERVICES

BENEFIT AND COMPETITIVE POSITION

We have developed our own proprietary technology platform to underpin our highly successful bulk quotation service. We are a leader in the small to medium size transaction space, with a differentiated position and competitive advantage. By using our unrivalled intellectual property, Just provides an individually tailored solution providing customers typically with double- digit percentage increases in income compared to standard products. Just’s pioneering Secure Lifetime Income product enables customers to select a guaranteed income from within a Self- Invested Personal Pension. This enables a customer to manage and blend their total pension assets tax efficiently within a single technology platform. Just’s Care Plans can be tailored to the individual and offer a tax-efficient solution by making payments to residential care providers. By using our unrivalled intellectual property, Just provides an individually tailored solution providing around six-in-ten customers with a lower interest rate or a higher borrowing amount compared to standard products. Just provides a range of lifetime mortgages, enabling people to meet a variety of needs in later life.

DEFINED BENEFIT DE-RISKING SOLUTIONS (“DB”) Solutions for pension scheme trustees to reduce the financial risks of operating pension schemes and increase certainty that members’ pensions will be paid in the future. GUARANTEED INCOME FOR LIFE (“GIFL”) A solution for individuals/couples who want the security of knowing they will receive a guaranteed income for life. SECURE LIFETIME INCOME (“SLI”) SLI is a tax-efficient solution for individuals who want the security of knowing they will receive a guaranteed income for life and the flexibility to make changes in the early years of the plan. CARE PLANS (“CP”) A solution for people moving to residential care who want the security of knowing a regular payment will be made to the care provider for the rest of their life. LIFETIME MORTGAGES (“LTM”) Solutions designed for people who want to release some of the value of their home.

marketed products 1

1 Reported in our Insurance segment.

SERVICES

BENEFIT AND COMPETITIVE POSITION

HUB Financial Solutions offers an innovative approach that provides affordable regulated advice to people with modest pension savings. It also delivers face-to-face advice at a time and place to suit the client. Provides a range of business services tailored to the needs of the organisation, ranging from consultancy and software development to fully outsourced customer service delivery and marketing services.

HUB GROUP Our professional services and distribution businesses delivering technology, broking and advice solutions for corporate clients and pension schemes. We also provide regulated financial advice on how people should use pension, investment and savings, or release some of the value from their homes. Support for organisations wanting to deliver whole-of-market shopping around services to source retirement income products for their customers, employees or pension scheme members. HUB Financial Solutions is the UK’s largest GIfL broker.

professional services 2

2 Reported in our Other segment.

Just Group plc | Annual Report and Accounts 2024

Chair’s statement BETTER FOR CUSTOMERS

It’s been an exceptional year, and we have delivered sustainable growth of the business, helped more of our customers and significantly increased value for shareholders.”

JOHN HASTINGS-BASS Chair

Annual General Meeting 2024 10.00am 8 May 2025 at Just Group plc 1 Angel Lane London EC4R 3AB

Governance Financial Statements

Strategic Report

I am pleased to introduce Just Group plc’s 2024 Annual Report. The title of our report captures the feeling amongst the Board and our colleagues about the Group’s performance, culture and outcomes for 2024. It’s been an exceptional year, and we have delivered sustainable growth of the business, helped more of our customers and significantly increased value for shareholders. HELPING OUR CUSTOMERS The ongoing economic challenges in the UK and globally are significantly affecting our customers and their families. During these uncertain times, our solutions offer much-needed certainty. As retirement specialists, we are committed to supporting our customers and their families through these difficult periods. By growing and adding to our capabilities we provide better help to more customers. At Just, our customers, both current and prospective, remain at the core of everything we do. OVERVIEW The primary focus of our Group in 2024 has been to capture profitable growth opportunities, invest for the future, and to ensure our business model continues to be financially resilient, so that we deliver ongoing sustainable growth. This has resulted in a robust balance sheet, with strong financial performance and business momentum. We have substantially exceeded the profit growth pledge as we more than doubled underlying operating profit in three years instead of five. We completed a £1.8bn defined benefit de-risking transaction, a new record for the Group, and our first deal to exceed £1bn. At the time of writing this report, the DB business unit has completed over 500 deals since it was formed just over a decade ago and is now equipped to support pension scheme trustees with big deals, small deals and everything in between. Our retail business has delivered significant growth, driven by the continued attractiveness of guaranteed income to advisers and their clients. The Group’s financial strength and performance have reached record levels, and both are set out in detail in the Business Review. I am delighted we have been successful in materially increasing shareholder value during this period. DIVIDEND Given the Group’s performance and strong capital position, the Board has recommended a final ordinary dividend of 1.8 pence per share, in line with our progressive dividend policy. BOARD COMPOSITION AND GOVERNANCE Kalpana Shah stepped down from the Board on 1 March, following her resignation, after serving for four years as Independent Non- Executive Director. On behalf of the Board, I would like to extend my appreciation to Kalpana for the contribution she has made to Just during her time on the Board and in particular as Chair of the Group Risk and Compliance Committee. We wish Kalpana all the best in her future endeavours. I take great pride in leading the Board and the Group’s governance function, and my introduction to the Corporate Governance report on page 70 provides further information on our governance and decision making processes. We have an excellent team in place for the medium term, that will ensure the Company is effectively governed and well led. I would like to thank the Board for their significant contribution, and look forward to working with them in 2025. You can read more about the Directors of the Company on pages 72 to 74. SUPPORTING UK GROWTH, PRODUCTIVITY AND SUSTAINABILITY Our number one priority is to deliver the promises we make to our policyholders. In order to meet these promises, we invest billions of pounds into the UK. We have expanded our investment capabilities and have originated a wider range of assets to meet the demands of our growing business.

Our industry can contribute materially to drive economic growth by investing in UK infrastructure, UK companies and UK assets. Just Group are founding members of the Investment Delivery Forum, which brings together the major insurance and long-term savings firms with an interest in large-scale infrastructure investment. It was formed to act as an accelerator for driving investment into the next generation of investment opportunities following key regulatory reforms that help unlock capital held by insurers and pension funds. We are making good progress towards our goal to become carbon net zero and doing our part to help the world transition towards a sustainable environment and low carbon global economy. You can read our high-level transition plan on our Group website and this year’s Annual Report provides insight to our climate-related risks and opportunities. Our disclosures are consistent with those recommended by the Taskforce on Climate-related Financial Disclosures and you can read more on pages 40 to 53. Read more about our sustainability strategy on page p40 and at justgroupplc.co.uk ENGAGEMENT WITH OUR STAKEHOLDERS The Board engages directly and indirectly with our customers, shareholders, colleagues, regulators, government, professional bodies and wider society to promote the interests of our customers more broadly. We place great importance on working effectively with these groups and actively seeking their feedback. We work hard to ensure our customers benefit from our services and our shareholders receive the benefit of long-term value creation. Throughout this report you can read how the Board takes into consideration feedback from the Company’s stakeholders and how the Board, and colleagues from across the Group, promote the success of the Company. PURPOSE DRIVEN We help people achieve a better later life, this is our purpose, it’s why we exist. We fulfil our purpose by delivering excellent products and services, so our customers achieve great outcomes. People don’t get a chance to experience retirement before it happens. Managing finances without regular salary payments can be complicated and stressful. We assist individuals in envisioning their post-work life and offer support, guidance, and advice to help them confidently take the next steps. Our purpose is just as meaningful today as it was when we first established it. It’s clear, authentic and it acts as a beacon for colleagues throughout the entire Group to embody our purpose daily. OUTLOOK There are strong structural drivers of growth which make all of our markets attractive. The propensity of company directors and pension scheme trustees to transact with insurers to de-risk their defined benefit pension schemes remains very strong. We continue to focus our leadership team on delivering great outcomes for customers, driving long-term profitable growth and investing for the future. The commercial outlook remains favourable for our Group. On behalf of the Board, I would like to conclude by expressing gratitude to David, his team, and all of our colleagues across the Group for their dedication to supporting our customers and delivering such exceptional results. I also extend my thanks to our business partners for trusting us to provide excellent service to their clients. We are helping our customers, building shareholder value through profitable and sustainable growth, fulfilling our purpose and helping contribute to growing the UK economy. We are optimistic about the future.

JOHN HASTINGS-BASS Chair

Just Group plc | Annual Report and Accounts 2024

Chief executive officer’s statement BUOYANT MARKETS AND STRONG GROWTH. £ 5.3 bn Retirement Income sales (shareholder funded) 1 2023: £3.9bn up 36% 1 Alternative performance measure £ 504 m Underlying operating profit 1 2023: £377m up 34%

With a clear purpose and vision, we’re shaping a future that’s not just bigger and better – but brighter.”

David Richardson Group Chief Executive Officer

Governance Financial Statements

Strategic Report

Our underlying operating profit has grown by 34% to £504m, driven by very strong growth in shareholder funded sales, up 36% to £5.3bn. Our DB and retail businesses contributed to this excellent performance, and both are operating in markets that are benefitting from long- term structural growth drivers. We are committed to compounding the growth in value of the business. During 2024, we have delivered 36.3p of underlying earnings per share and increased the Group’s tangible net asset value by 30p to 254p per share. DEFINED BENEFIT DE-RISKING BUSINESS (SHAREHOLDER FUNDED) SALES UP 43%, TOTAL DB SALES UP 57% Our DB business generated another record year of transactions, with total sales up 57% to £5.4bn. This total includes our largest transaction to date, a £1.8bn full Buy-in with the Trustee of the G4S Pension Scheme, covering the benefits of c.22,500 pensioner and deferred members. This transaction, our first above £1bn, demonstrates that we have all the capabilities in place to deliver de-risking solutions across the DB market. During 2024, we completed 129 transactions, a significant increase on the 80 we completed in 2023 and more than double the 56 completed in 2022. This number is a record year for any company in the history of the DB market as we completed over one third of the total market transactions. We have used technology to meet growing market demand and use of our bulk quotation and price monitoring service, Beacon, continues to increase. It is now being used by all major employee benefit consultants and Beacon has the capacity to provide services to every DB pension scheme in the UK. Pension scheme de-risking is helping to support growth in the UK economy by enabling UK corporates to focus on growing their businesses and by investing the assets in productive finance. Read more about our DB business on P18–20 GUARANTEED INCOME FOR LIFE SALES UP 16% After a very strong return to growth in 2023, I am delighted that our retail business has shown further excellent progress in 2024, with GIfL sales up 16% to £1.0bn. Market demand has been strong as the appetite of advisers to lock-in security for their clients continues to grow. Strong consumer demand is also evidenced by the activity levels in our GIfL broking business, the largest in the UK. The number of advisers sourcing quotes from Just has increased rapidly over the last two years and continues to provide increased opportunities to utilise our medical underwriting intellectual property to select the most attractive risks. SCALABILITY OF OUR INVESTMENTS CAPABILITY Our successful illiquid origination strategy enabled us to source £2.4bn of illiquid investments during 2024, a 40% increase year on year, at attractive spreads above equivalent public assets. We are continuing to broaden our capabilities, with £1.0bn of this total sourced internally by our expanded Investments team, in addition to £0.3bn of funded lifetime mortgages via our retail business. Our illiquid investments in 2024 included social housing, We help people achieve a better later life, that’s our purpose and why we exist. We fulfil that purpose by delivering market-leading products and award-winning services to our customers. In 2024, more than 90,000 people became new customers of one of our businesses. We are now in a privileged position to be helping record numbers of customers, and we are investing to explore how we can help more people, with unmet needs, across the wider retirement markets. infrastructure and private placements. OUR PURPOSE AND OUR CUSTOMERS

SUSTAINABILITY We are committed to a sustainable strategy that protects our communities and the planet we live on. The most material impact we can make to reduce carbon emissions is through the decisions we take with our £27bn investments portfolio, which accounts for over 99% of our carbon footprint. Compared to our 2019 baseline, we have now reduced these emissions by 36%, which is excellent progress on our journey to achieving our net zero target. OUR PEOPLE We are harnessing the power of our highly talented, ambitious and engaged colleagues to deliver strong business growth and fulfil our purpose. Our focus is on ensuring we have the right capabilities for today and the future, delivering an exceptional colleague experience and enhancing the skills of our people managers. I am very pleased we’ve made excellent progress in two key focus areas. Our colleague engagement score has continued to increase and is now 8.3 (2023: 7.9). We have exceeded our 2026 target, two years early, to increase the number of females in senior positions to 40%. I would like to thank all my colleagues for their significant efforts in providing outstanding support to our customers – directly and indirectly – and delivering these excellent results. It’s always a team effort and my colleagues make Just a brilliant place to work. FINANCIAL PERFORMANCE, UNDERLYING OPERATING PROFITS UP 34% In 2024, underlying operating profit is up 34% to £504m, driven by strong new business performance further augmented by robust growth in recurring in-force profit, which combine to deliver a 15.3% return on equity. We incurred operating experience variances, the cost of strengthening the maintenance expense assumption, together with strategic costs as we invest to develop new propositions. These were partially offset by investment and economic profits and adjustments for items accounted for in equity, resulting in an adjusted profit before tax of £481m for 2024 (2023: £520m). After allowing for deferral of profit into the CSM balance sheet reserve, the IFRS profit before tax is £113m (2023: £172m). Our disciplined approach to risk selection means we can fund our growth ambitions from our own resources, maintain a strong buffer of capital and reward shareholders with a growing dividend. We will pay a final dividend of 1.8 pence per share, giving a total of 2.5 pence for the year, representing 20% year-on-year growth. IN CONCLUSION Over the last three years underlying operating profit has more than doubled as we successfully executed our strategy. We are confident in our ability to grow at attractive rates from this elevated level. We have multiple opportunities available and structural growth in our chosen markets. Our DB and retail businesses are both contributing to our excellent performance, reflecting our continuing investment in technology and talent. We have a growth mindset, and we’ve developed a winning formula – one which will ensure we fulfil our purpose, to help people achieve a better later life. This formula is delivering sustained growth in the value of the business. With a clear purpose and vision, we’re shaping a future that’s not just bigger and better—but brighter.

DAVID RICHARDSON Group Chief Executive Officer

Just Group plc | Annual Report and Accounts 2024

Market Context

HELPING CUSTOMERS STRENGTHEN THEIR FINANCIAL RESILIENCE

DEFINED BENEFIT DE-RISKING SOLUTIONS Private and public sector employers traditionally provided Defined Benefit (“DB") pension schemes, often called final salary schemes, as an important benefit for employees. The employer would share some responsibility for the wellbeing of their former workers when they retired by providing a guaranteed retirement income based on their earnings history and length of employment. However, providing these guaranteed benefits became expensive. Over 95% of the UK’s DB pension schemes are now closed to new members. Continuing to operate these schemes has become more onerous for employers. The DB de- risking business has allowed these employers to alleviate the financial and operational challenges of running these schemes by passing responsibility for the schemes to insurers who can fully or partially de-risk the employer’s defined benefit obligations. DB de-risking can occur via a Buy-in or Buy-out. All Buy-outs begin as Buy-ins. A Buy-in involves the pension scheme paying a premium to an insurance company to purchase an income stream that matches its DB obligations to some or all of its members. The risk attached to that portion of the scheme is transferred to the insurer, but the scheme retains legal responsibility for its DB obligations to its members. During a Buy-in, the pension scheme continues to pay pensions to members, but the funding wholly or partly comes from the insurer. Buy-out is when the scheme’s obligations move fully across to the insurance company to pay its members’ benefits. As part of a conversion from Buy-in to Buy-out, members receive individual policies and become customers of the insurer. Subsequently, the pension scheme is closed (also known as completing wind-up) as the DB obligations are moved across to the insurer, who now pays the members directly. CURRENT MARKET As of 31 March 2024, total UK DB obligations were £1.2tn. Within this, 78% of the almost 5,000 schemes have assets of less than £100m. Since 2019, the funding levels of all schemes on a full Buy-out basis has increased from 72% to 94%. The improvement in funding levels was initially driven by sponsoring company contributions and insurer’s ability to access improved reinsurance terms. In the last few years, the main driver has been higher long-term interest rates, which reduce the liability value of the DB pension obligation by more than the asset value held in the scheme. Favourable market conditions have led to more DB schemes now being in surplus. According to the Purple Book, March 2024, there is an aggregate £68bn of surplus on an insurer Buy-out basis for those schemes that are already in surplus. Surplus has been a hot topic amongst trustees and their advisers throughout the year, in terms of debating the best end game option for their scheme (e.g. run-on versus insurance). Buy-in (and ultimately Buy-out) remain by far the most popular de-risking options for the majority of schemes (source: LCP). COMPETITIVE, REGULATORY FACTORS With a new government elected there is a period of re-assessment towards pension policy. Chancellor Rachel Reeves’ first Mansion House speech announced the findings from the first part of the government’s landmark pension review. This focused on consolidation of smaller occupational defined contribution (“DC") pension schemes, Local Government Pension Schemes (“LGPS") and a drive to invest more into UK productive investment to enhance UK economic growth. The insurance industry has pledged to invest £100bn in productive finance over the next decade.

Structural drivers in our markets mean we can grow profits sustainably while delivering better outcomes for customers.

There is a vibrant insurance de-risking market for defined benefit pension schemes of all sizes and Just are delivering outstanding service to small and large schemes and everything in between.”

Governance Financial Statements

Strategic Report

In 2025, we expect the government’s new Pension Bill will introduce legislation for the so called superfund regime, replacing the pension regulator’s temporary regime. In addition to the technical matters of how superfund schemes will be governed, we expect the legislation will make clear which DB pension schemes would be allowed to consolidate through these arrangements. A very small number of transactions have been announced under the temporary regime. In April, the Department for Work and Pensions (“DWP") closed a consultation on legislative changes to introduce greater flexibility to access surplus funds in DB pension schemes. It also consulted on establishing a public sector consolidator administered by the Pension Protection Fund, for DB pension schemes that were unattractive to commercial consolidation providers. We and others in the industry have responded to the consultation and maintain an open, constructive dialogue with government and officials. 2024 was a very strong year for the value and volume of insurance consolidation with £47bn of deals completed (source: Association of British Insurers (“ABI”)). Just Group estimates that approximately 280 transactions were concluded, setting a new record for the industry. There is a vibrant insurance de-risking market for DB pension schemes of all sizes. As expected, three new participants entered, and completed transactions in the DB market – Royal London, M&G and Utmost. Scottish Widows exited, which resulted in there being 10 active insurers competing for business at the end of 2024. There is speculation other new entrants could emerge in 2025. New regulations for climate reporting introduced in The Pensions Schemes Act 2021, have led to more trustees considering de-risking to seek assurance that ESG considerations underpin the asset choices in insurers’ investment portfolios. In 2023, the Church of England and Railpen Pension Schemes spearheaded an initiative to integrate ESG principles into the selection of insurers during bulk annuity processes. This initiative resulted in the creation of the ‘Sustainable Principles Charter for the Bulk Annuity Process’. Guided by the organisation ‘Accounting for Sustainability’, Just Group is proud to have been a founding partner for the Charter. This puts bulk annuity providers ESG credentials on a comparable basis, helping schemes approaching buy-out to make a well informed and ESG based selection of their preferred provider. We welcome innovative solutions to the market, but irrespective, we believe the scale of the market and strength of demand for ‘gold standard’ insurance solutions will mean that trustees and their consultants will continue to prioritise the insurer pathway where possible. OUTLOOK In conclusion, the structural growth drivers for the DB de-risking market remain intact and the outlook for the next decade is strong. The increase in gilt yields since 2022 has reduced the estimated liabilities of defined benefit pension schemes and dramatically improved funding levels. The strong demand in the insurance de-risking market is predicted to continue over the decade to 2033, with commentators predicting up to £600bn (source: LCP) could be transferred to insurers during this period. There is a vibrant market for schemes of all sizes and insurance capacity has kept pace with demand. As transaction volumes continue to increase, pressure on scarce human resources may be felt across the wider ecosystem. When selecting new business, insurers will prioritise pension schemes that have their governance, data and benefit specifications in good order. Just Group is continuing to invest in its proposition, resources and service to ensure that schemes we work with can realise their de-risking ambition and provide the best member outcomes and experience.

96% of defined benefit pension schemes are closed to new members and increasingly to future accrual (%)

2023 2024

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

100

Closed to new members (open to benefit accrual) Closed to future accrual Source: The Purple Book 2024, PPF

Expected growth in DB de-risking transactions (£bn)

2024

2022 2023

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

Buy–in/Buy-out

Backbook acquisition

Source: Just analysis, LCP 2024, ABI

Just Group plc | Annual Report and Accounts 2024

Market Context continued

INDIVIDUAL RETIREMENT INCOME MARKET Guaranteed Income for Life (“GIfL”) products are bought by individual customers to convert some or all of their accumulated pension savings into a guaranteed lifetime retirement income. The solution provides people with peace of mind from the security of knowing the income will continue to be paid for as long as the customer and, where relevant, for as long as they or, typically, their spouse, lives. In the UK, GIfL products traditionally offered an income payable without reference to the individual’s health or lifestyle, and were differentiated only by reference to a limited number of factors such as age, premium size and, prior to 31 December 2012, gender. An individually underwritten GIfL takes into account an individual’s medical conditions, personal and lifestyle factors to determine their life expectancy. People who are eligible and purchase an individually underwritten GIfL typically achieve double-digit percentage increases in income compared to purchasing a GIfL which is not individually underwritten. CURRENT MARKET AND OUTLOOK Pension customers are encouraged to compare the GIfL offer provided by their existing pension company to those offered on what is the open or external market. The Financial Conduct Authority (“FCA”) requires pension companies to provide customers with a comparison to the best income available from the external market alongside the quotation from the incumbent firm. All firms are required to provide a medically underwritten comparison where a customer is eligible. These FCA rules to strengthen competition and deliver better outcomes for customers has provided new opportunities for the Group as we compete in the open market when these customers choose to shop around; this is our addressable market as we do not have an existing base of pension savings customers. The open market share of the total GIfL market for 2024 was 76% up from 70% in 2023 (source: Association of British Insurers (“ABI”)). Continuing developments are driving growth over the medium term in our addressable market: • the structural drivers of growth in the retirement income market are strong and assets accumulating in defined contribution (“DC”) pension schemes are projected to increase consistently over the next decade. This growth arises from an increase in the number of people joining workplace pension schemes as a result of the successful state auto-enrolment policy and the increase in contribution rates implemented in 2018; • growth in DC pension assets also arises as companies close down final salary or DB pension schemes and offer their employees DC pensions instead; • many life and pension companies are choosing to put in place broking solutions to offer their pension savings customers access to the best individually underwritten GIfL deals in the market. Some are choosing to transfer their obligations to provide a guaranteed GIfL rate to their customers, to an alternative product provider or broking solution. This grows our addressable market and provides customers with better outcomes. Our HUB group of companies is providing many of these corporate services; • the market is currently benefitting from the return of UK long term interest rates to more normalised levels. The rate of income on GIfL has risen by around 50% compared to 2021. This has resulted in the volume of quotations from financial intermediaries and their clients for guaranteed income solutions increasing; and • new solutions are being introduced to the market to provide financial advisers with more sophisticated options to blend a guaranteed income producing asset with other investments to deliver improved outcomes for their clients.

REGULATION AND LEGISLATION There are a number of changes in-flight from legislators and regulators that when implemented may increase the size of our addressable market. • In March 2024, the FCA published findings on how the retirement income advice market is working and whether consumers are receiving appropriate advice on meeting their income needs in retirement. The FCA concluded improvements must be made by firms who were not currently meeting the standards required to ensure people receiving a retirement income were treated differently to those people who were in the accumulation, or savings phase. Retirement income advice remains an ongoing focus for the FCA and they will be carrying out further supervisory work in this area. • In August 2023, the FCA set out the basis for a joint review of the Advice Guidance Boundary with the HM Treasury which forms part of the UK government’s Edinburgh Reforms. Their aim is to understand where existing regulation may carry a disproportionate burden, and to explore ideas to reduce that burden, whilst continuing to provide the right level of consumer protection. In their November 2024 update, the FCA has stated they will focus on helping people navigate the complex decisions about pensions and are consulting on high-level proposals for targeted support in pensions, which would allow firms they regulate to provide support to pension savers in a new way. This may, over the medium term, result in more people receiving help and guidance in how to use their pension savings. • In July 2023, the FCA introduced a new duty, known as the Consumer Duty, that sets higher and clearer standards of consumer protection across financial services, and requires firms to put their customers’ needs first. The duty introduces a new consumer principle that requires firms to act to deliver good outcomes for retail customers. The outcomes relate to (i) products and services; (ii) price and value; (iii) consumer understanding; and (iv) consumer support. LIFETIME MORTGAGES A lifetime mortgage (“LTM”) allows homeowners to borrow money secured against the equity in their home. The amount borrowed is repayable together with accrued interest on the death of the last remaining homeowner or their move into permanent residential care. This product can be used by retirees to supplement savings, top up retirement income or to settle any outstanding indebtedness. Our typical lifetime mortgage customer is around 69 years old, has a house valued at around £360,000 and borrows 29% of the property value. Just Group is a leading product provider of lifetime mortgages. Our HUB Financial Solutions business is a leading distribution business providing consumers with regulated advice on equity release solutions from across the market. CURRENT MARKET AND OUTLOOK The LTM market experienced a period of stagnation and decline in 2023, as the market and consumer demand adjusted to higher interest rates and the impact of increased inflation. This resulted in providers and distributors reshaping their operating models and risk appetites to reflect a higher interest rate environment. The market returned to year on year growth in the final quarter of 2024. There has been an increase in the number of on-sale products, which provide customers with a range of options to ensure their individual needs are met. Many people are positively disposed to accessing some of the equity in their homes to improve the quality of their later lives or to help their family.

Governance Financial Statements

Strategic Report

The fundamental drivers of growth remain intact, and are: • households wanting to top up their retirement income to improve their, or their family’s standard of living in later life; • people with outstanding mortgages who are entering retirement and require a solution to settle the debt with the existing mortgage company; • strong demographic growth. The number of people aged 65 and over is forecast to increase from around 13 million today to around 17 million by 2040 (source: ONS); and • homeowners aged over 55 are estimated to own property wealth of over £3.5tn (source: ONS). We estimate that the existing industry loan book including interest is around £48bn. Just Group introduced medical underwriting into a niche segment of the lifetime mortgage market some years ago and in 2021 extended it across the Just for You mortgage range. We estimate by collecting medical information and lifestyle factors from applicants, we are able to provide six-in-ten a lower interest rate, or for those who need it, a higher borrowing amount. This market disruption has positively changed how lifetime mortgages are advised. LONG-TERM CARE SOLUTIONS Care Plans, or immediate needs annuities, are a form of purchased life annuity. In exchange for an up-front premium, they provide a guaranteed income for the life of the insured to help contribute to the cost of their care. Under current rules this income is tax free when paid directly to a registered care provider, with Care Plans available both to individuals entering care facilities and receiving domiciliary support. As such, Care Plans provide a form of longevity insurance to an individual against the ongoing costs of receiving care until their death. In January 2025, the government announced their intention to launch an independent commission to reform adult social care. The taskforce, to be led by the cross-bench peer Louise Casey, will be charged with developing plans for a new national care service, a Labour election manifesto pledge, in the biggest shake-up to social care in England in decades. The final report is not expected until 2028.

EXTERNAL GIFL MARKET (£M)

0 1,000 2,000 3,000 4,000 6,000 5,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: Just analysis, ABI

LIFETIME MORTGAGE MARKET SIZE AND GROWTH RATE (£M)

2024 2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

CURRENT MARKET AND OUTLOOK The drivers of the need for care are strong because:

2012

• there are currently around 1.7 million people aged 85 or over in the UK – this is the average age at which people go into care homes; • this is the fastest growing demographic cohort, with its number expected to almost double over the next 25 years, suggesting a rate in excess of 2.6%; • 40% of all people in the UK aged 65 and over are estimated to have a limiting long-standing illness, which may require care in the future; and • the recent focus on pressures within the care sector has highlighted the need to plan for care, and any government reform will provide additional focus on the limited number of solutions currently available.

2011

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Lump sum mortgage sales

New drawdown mortgage – initial advance

Existing drawdown mortgages – further advances

Source: Equity Release Council

PEOPLE AGED 60 AND OVER

25%

26.2%

27.9%

28.9%

29.3% 30.7%

17 18 16 20 21 22 19 23

2040 2035 Source: Office of National Statistics, population projections UK Percentages: 60 and over as a proportion of total UK population 15 2022 2025 2030

2050

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