Governance Financial Statements
Strategic Report
07
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
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