Just Annual Report and Accounts 2023

EXCEEDING EXPECTATIONS

JUST GROUP PLC ANNUAL REPORT AND ACCOUNTS 2023

OUR PURPOSE WE HELP PEOPLE ACHIEVE A BETTER LATER LIFE

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

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.

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

APPROVAL The Strategic Report was approved by the Board of Directors on 7 March 2024 and signed on its behalf by:

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

JOHN HASTINGS-BASS Group Chair

Strategic Report | Governance | Financial Statements | 1

STRATEGIC REPORT 1 Our purpose 2 Investment case 3

Financial and operational highlights

4 6 8

At a glance

Chair’s statement

Chief Executive Officer’s statement

10 Market context 14 Business model 16 Strategic priorities 18 Case study: Innovation 20 Key performance indicators 22 Business review

p18 A TRACK RECORD OF INNOVATION

34 Sustainability and the environment 36 Sustainable investment strategy 40 Sustainability strategy: TCFD disclosure framework 50 Colleagues and culture 54 Relationships with stakeholders 56 Section 172 statement 61 Non-financial and sustainability information statement 64 Risk management 66 Principal risks and uncertainties GOVERNANCE REPORT 70 Chair’s Governance overview 72 Board of Directors 76 Senior leadership 78 Governance in operation 88 Nomination and Governance Committee report 91 Group Audit Committee report 97 Group Risk and Compliance Committee report 100 Directors’ Remuneration report 120 Directors’ report 125 Directors’ responsibilities FINANCIAL STATEMENTS 126 Independent Auditors’ Report 137 Consolidated statement of comprehensive income 138 Consolidated statement of changes in equity 139 Consolidated statement of financial position 140 Consolidated statement of cash flows 141 Notes to the consolidated financial statements 218 Statement of changes in equity of the Company 219 Statement of financial position of the Company 220 Statement of cash flows of the Company 221 Notes to the Company financial statements 225 Additional information 228 Information for shareholders 230 Directors and advisers 231 Glossary and abbreviations

p36 INVESTING THE JUST WAY

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

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.

For more information about each of our Stakeholders see P4

2 | Just Group PLC | Annual Report and Accounts 2023

INVESTMENT CASE GROWTH, INNOVATION AND DELIVERY

Deploying the capabilities of our highly effective new business franchise to create value from leadership positions in attractive and high-growth segments of the UK retirement income market.

WE HELP PEOPLE ACHIEVE A BETTER LATER LIFE 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 are retirement experts and deliver value for shareholders by putting customers first and meeting their needs. Read more on p5 EXCEEDING OUR 15% PROFIT GROWTH TARGET Our priority is to deliver profitable and sustainable growth. We have exceeded our profit growth pledge each year by growing profits 19% in 2022 and 47% in 2023. With the opportunities available to us, we are confident in our ability to continue to deliver exciting profit growth. Read more on p23 FAST GROWING RETIREMENT MARKETS Our retirement markets are growing rapidly. Helped by higher interest rates, the markets for defined benefit schemes de-risking and individual retirees seeking a guaranteed income for life are buoyant. As the population ages, our markets have many years of growth ahead. Read more on p10

GROWING SHARE THROUGH INNOVATION AND POSITIVE DISRUPTION

We increase our share in these growing markets through continuous innovation – seeking to positively disrupt the markets where we choose to participate. By delivering better outcomes for customers, we also deliver value for shareholders. Read more on p14 CONSISTENT DELIVERY AND DISCIPLINE Over the past five years, we have developed a strong track record of delivery. We have consistently met or exceeded our profit targets, our cash generation and balance sheet promises. During that period, we have progressively improved both the quality and resilience of our capital base, and the estimated solvency ratio now stands at 197%. Read more on p20

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

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FINANCIAL AND OPERATIONAL HIGHLIGHTS

KEY PERFORMANCE INDICATORS

NEW BUSINESS PROFIT 1

UNDERLYING OPERATING PROFIT 1

RETIREMENT INCOME SALES (SHAREHOLDER FUNDED) 1 £3,893 M 2022: £3,131m, up 24%

£355 M 2022: £266m, up 33%

£377 M 2022: £257m, up 47%

RETURN ON EQUITY 1

IFRS PROFIT/(LOSS) BEFORE TAX £172 M 2022: £(494)m

TANGIBLE NET ASSET VALUE PER SHARE 1 224 P 2022: 190p

UNDERLYING ORGANIC CAPITAL GENERATION 1 £57 M £34m at 31 December 2022 13.5 % 10.3% at 31 December 2022

NEW BUSINESS STRAIN 1

SOLVENCY II CAPITAL COVERAGE RATIO (ESTIMATED) 1,2 197 % 199% at 31 December 2022

0.9 % 2022: 1.9%

FINANCIAL STRENGTH AND OTHER INDICATORS

A FITCH INSURER FINANCIAL STRENGTH RATING for Just Retirement Limited (2022: A+)

A FITCH ISSUER DEFAULT RATING for Just Group plc (2022: A)

AWARDED FURTHER RECOGNITION FOR OUTSTANDING SERVICE

FINANCIAL ADVISER:

Outstanding achievement award

5 Star service award (Pensions and Protection)

5 Star service award (Mortgages)

1 A lternative performance measure (unaudited, see glossary for definition). New business strain, Underlying organic capital generation and Solvency coverage ratio are reconciled to Solvency II excess own funds on page 27. New business profit is reconciled to IFRS profit before tax on pages 24 and 26. Return on equity is based on Underlying operating profit, which is reconciled to IFRS profit before tax on page 26, and Tangible net asset value, which is reconciled to IFRS total equity on page 24. Retirement Income sales (shareholder funded) are reconciled to premium cash flows in note 9 to the consolidated financial statements on page 169. 2 S olvency II capital coverage ratios as at 31 December 2023 and 31 December 2022 include a recalculation of transitional measures on technical provisions (“TMTP”) as at the respective dates.

4 | Just Group PLC | Annual Report and Accounts 2023

AT A GLANCE Leaders in our markets.

We positively disrupt markets where we can become a leader and deliver great outcomes for customers so we may create value for shareholders.

WE ARE A SPECIALIST IN OUR CHOSEN MARKETS, SERVING FOUR DISTINCT GROUPS…

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

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

Strategic Report | Governance | Financial Statements | 5

...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 market 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 to 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 nationwide advice at a time and place to suit the client, and enables pension schemes to deliver efficient and robust scheme-led defined benefit transfer programmes. + 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.

6 | Just Group PLC | Annual Report and Accounts 2023

CHAIR’S STATEMENT

We are fulfilling our purpose by providing certainty to our customers in an uncertain world, which results in us delivering profitable and sustainable growth to create value for shareholders. EXCEEDING EXPECTATIONS

JOHN HASTINGS-BASS Group Chair

ANNUAL GENERAL MEETING 2023 10.00am, 7 May 2024 at Just Group plc 1 Angel Lane, London EC4R 3AB

Strategic Report | Governance | Financial Statements | 7

I am pleased to introduce Just Group plc’s 2023 Annual Report. Our Company has never been stronger. This is the second year in succession our performance has significantly exceeded the profit growth pledge we made two years ago. We have delivered sustainable growth of the business, helped more of our customers and increased value for shareholders. HELPING OUR CUSTOMERS The challenging economic events in the UK and around the world are having profound impacts on the lives of our customers and their families. In these uncertain times, our solutions provide reassuring certainty to our customers. As the retirement specialist we are doing all we can, during these difficult times, to help them and their families. Our customers, existing and prospective, are at the heart of everything we do at Just. OVERVIEW OF GROUP PERFORMANCE The primary focus of our Group in 2023 has been to capture profitable growth opportunities to ensure we meet our medium-term profit growth pledge. It has been a year of record growth, continued delivery, with successful strategic execution and ongoing investment. This has resulted in a strong balance sheet and financial performance, with exceptionally strong business momentum. The Group’s financial strength and performance have never been stronger, and both are set out in detail in the Business Review. DIVIDEND Given the Group’s performance, strong capital position and our confidence in the future prospects of the business, the Board has recommended a final ordinary dividend of 1.50 pence per share, resulting in a 2023 total dividend per share of 2.08p (2022: 1.73p). This represents a 20% increase on prior year, and is in line with our stated policy to grow the dividend over time. BOARD COMPOSITION AND GOVERNANCE We welcomed Mark Godson, our new Group Chief Financial Officer to Just in November and to the Board on 1 December. He is one of the top talents in the insurance market, bringing with him extensive commercial and financial insight gained from across the sector. I’d like to welcome Jim Brown as Independent Non-Executive Director, who joined the Board on 1 November 2023. He brings extensive experience of financial services leadership, and you can read Jim’s full biography on page 73. Andy Parsons, our outgoing Group Chief Financial Officer, started his retirement and stood down from the Board on 31 December. On behalf of the Board, I want to thank Andy for his central role in building our financial strength which has allowed us to return to growth in recent years and face into the future with confidence. We all wish him a very healthy and happy retirement. Read more about the Directors of the Company on P72–74. 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 entire Board for their significant contribution and look forward to working with them over the coming year.

ACTING SUSTAINABLY Our industry has an important role to play in helping the world transition towards a sustainable environment and low carbon global economy. We are making good progress towards our goal to become carbon net zero. 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 49. Growing the Just Way is a theme our colleagues across the Company are active in shaping and the Board receives input from our colleagues. We are on an exciting journey as a Company, as an industry, as a country and as individuals. We are encouraged by the government’s reforms of the Solvency II regime, referred to as Solvency UK. When fully implemented these reforms could unlock billions of pounds of investment from insurers into the UK economy, contributing to the sustainability agenda, and enabling us to provide even more competitive products to our customers. Read more about our sustainability strategy on P34 and at justgroupplc.co.uk . ENGAGEMENT WITH OUR STAKEHOLDERS The Board engages directly and indirectly with our customers, shareholders, colleagues, regulators, legislators, 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 to our customers. Most people don’t get an opportunity to test drive their retirement. Organising finances when the regular salary cheques no longer arrive can be complex and create anxiety. We help people explore what their life after work could look like and provide help, guidance and advice so they have the confidence to take the next steps. We develop market-leading products and award-winning services so our customers achieve great outcomes. Our purpose remains as relevant today as it did all those years ago when we created it. It’s clear, authentic and it acts as a beacon for colleagues across the entire Group to live our purpose every day. OUTLOOK There are strong structural drivers of growth which make our markets attractive. The propensity of company directors and pension scheme trustees to transact with insurers to de-risk their defined benefit pension schemes has increased. We have focused our leadership team on driving long-term profitable growth. The commercial outlook remains favourable for our Group. On behalf of the Board, I would like to close by thanking David, his team and all of our colleagues across the Group for their commitment to helping our customers and doing such a great job. I’d also like to thank our business partners who have trusted us to provide outstanding service to their clients. We are helping our customers, building shareholder value through profitable and sustainable growth, fulfilling our purpose and helping contribute to a net zero economy. We are optimistic about the future.

8 | Just Group PLC | Annual Report and Accounts 2023

CHIEF EXECUTIVE OFFICER’S STATEMENT WE HAVE NEVER BEEN STRONGER We continue to exceed

£ 377 m Underlying operating profit 1 2022: £257m ↑47%

the promises we’ve made and we are very optimistic about the future.

£ 3,893 M Retirement Income sales (shareholder funded) 1 2022: £3,131m ↑24%

DAVID RICHARDSON Group Chief Executive Officer

1 Alternative

performance measure.

Strategic Report | Governance | Financial Statements | 9

I am very pleased to present my Chief Executive Officer’s Statement for 2023. We’ve delivered an exceptionally strong performance and are extremely well positioned to continue benefiting from the positive drivers and favourable demographics supporting both of our markets. RETIREMENT INCOME SALES GROWTH The rise in interest rates during 2022 and 2023 had a positive effect on both the Defined Benefit and retail Guaranteed Income for Life markets. Shareholder funded sales have grown by 24% to £3.9bn. Our DB and retail businesses both contributed to this growth and have started the year with positive momentum. This gives us increased confidence we will achieve our growth ambitions in 2024. DEFINED BENEFIT DE-RISKING BUSINESS Our DB business continues to thrive and recorded total sales of £3.4bn, up 21%. We completed 80 transactions during the year, which is a substantial increase from 56 completed in 2022. Our bulk quotation service continues to grow in popularity, with completed transactions from 17 employee benefit consultants (“EBC”) during the year. We have hundreds of schemes onboarded and this service provides a vibrant market for schemes of all sizes and a steady source of smaller deal completions. Indeed around 40 completions in 2023 were schemes with fewer than 100 members and they represent half the schemes currently onboarded. As well as expanding our leadership position in the smaller transaction size segment, we will also drive growth by securing additional larger transactions. We have significant pricing and deal experience having written almost 400 DB transactions since entering the market in 2013, which is more than one-in-five of all transactions completed since then. The flexibility provided by our stronger capital position and expanded panel of reinsurance partners further supports our participation in the larger transaction segment. The DB market had a record year in 2023, with c.£50bn of new business volumes (source LCP, WTW). These EBCs are forecasting that industry volumes in 2024 and beyond could grow significantly from this higher base. RETAIL BUSINESS I am delighted that our retail business has had a very strong year with sales up 59% to £0.9bn. The GIfL market has returned to strong growth and has had its busiest year since Pensions Freedoms were announced in 2014. The number of advisers looking for quotes from Just has increased by 50% and this is providing us with increased opportunity to utilise our medical underwriting expertise to select the most attractive risks. Conduct regulation changes being introduced by the FCA may result in greater use of retirement income solutions containing guarantees to help deliver improved customer outcomes. EXPANDING OUR INVESTMENTS IN TANDEM We are continuing to broaden our investment capabilities. Our successful illiquid origination strategy enabled us to source £1.6bn of non-LTM illiquid investments during 2023, a 50% increase year on year. As the government’s Solvency UK legislation is implemented, we expect this will unlock additional opportunities to grow and diversify our investments portfolio, while enabling us to support the UK economy. CUSTOMERS AND OUR PURPOSE The current unpredictable economic outlook in the UK and volatility in investment markets creates uncertainty and worry for many. We provide a guaranteed income for life to customers, and as long-term interest rates have risen over the last two years, the amount of retirement income we are able to pay customers has increased significantly. This secure income is often purchased to cover the essential expenditure of the household. Our solutions provide much sought reassurance to customers.

Our purpose is to help people achieve a better later life. We provide a range of professional advice and guidance to help people, and are continuing to invest in these services to make them more available to a wider pool of potential customers. We can’t resolve all the challenges faced by our customers, but we are helping where we are able to, and remain focused on living up to the purpose we set out many years ago. SUSTAINABILITY We achieve our goals responsibly and are committed to a sustainable strategy that protects our communities and the planet we live on. I am very proud that over the last four years we have reduced our operational carbon intensity per employee by 83%. However, the most material impact we can make to reduce carbon emissions will be achieved through the decisions we take with our £24bn investments portfolio. Compared to our 2019 baseline, we have reduced these emissions over 30% for each million pound invested. During 2023, we also continued to invest in environmental, social, and corporate governance (“ESG”) related assets with £325m invested in social housing, the renewable energy industry and NHS facilities. OUR PEOPLE Our Just culture is underpinned by our people who are passionate and committed to making a difference to the lives of those around them. The combination of our strong purpose and having highly engaged teams working the “Just way”, is a competitive advantage which is helping us to drive high performance and achieve our ambitious growth targets. I would like to thank my colleagues for their continued focus in providing outstanding support for our customers when they needed it most and for helping to deliver an excellent set of results. We are investing to develop the skills of our colleagues, attract new talent into Just and build high-performing teams. We have excellent, and improving, levels of colleague engagement (2023: 7.9; 2022: 7.7), with a key priority to build a diverse and inclusive workforce. FINANCIAL PERFORMANCE In 2023, underlying operating profit, is up 47% to £377m, driven by the strong new business performance, which has delivered a return on equity of 13.5%. Investment and economic profits were £92m, and, combined with a number of smaller non-operating items, led to an adjusted profit before tax of £520m for 2023 (2022: adjusted loss before tax £167m). Of this, £348m of profit is deferred to the CSM reserve in the balance sheet, leaving a statutory profit before tax of £172m (2022: loss before tax £494m). The strength and resilience of our capital position and our disciplined pricing and risk selection ensures we are, and will continue to be capital self-sufficient. This means we can fund our growth ambitions, reward shareholders with a growing dividend and maintain a strong buffer of capital. We will pay a final dividend of 1.50 pence per share, giving a total of 2.08 pence for the year, representing 20% year on year growth. The 20% growth in total dividend is ahead of the 15% 2022 dividend growth rate. IN CONCLUSION 2023 represents another year of outperformance, further building our track record. We are exceptionally well positioned to capture the benefits of positive market trends and have increased confidence in our ability, from this higher base, to deliver 15% growth in underlying operating profit. In addition, we have increased our target return on equity to greater than 12% from greater than 10% previously. We have never been stronger. We are retirement experts and have the capability and opportunities to achieve our ambitious growth plans so that we build substantial value for shareholders and fulfil our purpose to help more people achieve a better later life.

10 | Just Group PLC | Annual Report and Accounts 2023

MARKET CONTEXT HELPING CUSTOMERS STRENGTHEN THEIR FINANCIAL RESILIENCE

Structural drivers in our markets mean that we can grow profits sustainably while delivering better outcomes for customers. DEFINED BENEFIT DE-RISKING SOLUTIONS Defined benefit pension schemes, often called final salary schemes, were traditionally used in both the private and public sectors as an important benefit for employees. The employer shared 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 90% of the UK’s Defined benefit pension schemes are now closed to new members and/or accrual of future benefits. 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 through passing responsibility for the schemes to insurers who can fully or partially de-risk the employer’s defined benefit obligations. Defined benefit de-risking can occur via a Buy-in or Buy-out. Before moving to Buy-out, many schemes move through the Buy-in phase. This involves the pension scheme paying a premium to an insurance company to purchase an income stream that matches its defined benefit obligations to some or all of its members, but retaining legal responsibility for those obligations. The risk attached to that portion of the scheme is transferred to the insurer, with schemes often de-risking over a period of time through multiple Buy-in tranches. Buy-out allows a pension scheme to fully remove its obligations to pay the benefits of its members, who then receive individual policies and become customers of the insurer. Subsequently, the pension scheme is wound down as the pension obligation owed to each member has moved across to the insurer. CURRENT MARKET As of 31 March 2023, total UK defined benefit obligations, across more than 5,000 schemes, owed by sponsors were £1.3trillion. Over the past 5 years, the funding level of the schemes on a full Buy-out basis has steadily increased from 68% to 112%, initially through sponsor contributions and improved pricing for longevity reinsurance, but especially over the past two years through rising interest rates. This has resulted in Buy-out being a realistic option for an increasing number of schemes, who have strong appetite to take the opportunity to de-risk. We were consistently busy during 2023, driven by our bulk quotation service and EBCs actively managing the industry pipeline, leading to less seasonality than previous years.

However, de-risking is not an overnight process. We estimate that since 2007, only 15% of defined benefit liabilities have been transferred to insurers via de-risking transactions. There is significant headroom for growth over the next decade. In 2023 bulk annuity volumes are estimated at c.£50bn (source: LCP De-Risking report 2023), with a continued shift towards full scheme transactions. COMPETITIVE, REGULATORY FACTORS AND POTENTIAL FOR ALTERNATIVE DE-RISKING SOLUTIONS The Pensions Regulator’s interim regulatory regime has been in place for three years. One consolidator, Clara, has successfully completed the Pensions Regulator’s assessment. They completed their first deal at the end of 2023. In July 2023 the Chancellor delivered his Mansion House speech outlining a number of initiatives to enhance pension savings in the UK, whilst also seeking to increase funding for high-growth companies. Two aspects are particularly relevant for the defined benefit market: 1. DB commercial consolidation The potential for the establishment of a regulatory regime to consolidate smaller defined benefit schemes into larger funds was mentioned. This initiative would be overseen by The Pensions Regulator. The government’s objective is that larger funds would invest a higher proportion of their funds in productive assets, compared to many closed or smaller defined benefit schemes.

The structural growth drivers for the defined benefit de-risking market have accelerated and the outlook for 2024 and beyond is exciting.”

Strategic Report | Governance | Financial Statements | 11

2. Pension Protection Fund In his Autumn statement, the Chancellor confirmed that he will publish a consultation on how the Pension Protection Fund (“PPF”) can act as a consolidator for schemes unattractive to commercial providers. Ultimately, the Chancellor hopes to increase opportunities for pension funds to invest in productive finance without compromising on the security of members’ benefits or trustees’ fiduciary duties. The government also plans to consult on enabling 100% PPF coverage for DB schemes that opt to pay a higher levy. 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. WIDENING THE INVESTMENT OPPORTUNITY Insurers cash flow match liabilities through the origination of a mix of investment grade liquid and illiquid fixed income assets. To offer attractive new business pricing, insurers must have strong capabilities to originate high-yielding, medium and long duration illiquid assets. Illiquid assets are split between the lifetime mortgages that we originate and manage ourselves and other illiquid assets, which includes a diverse range of investments such as infrastructure debt, private placements, commercial real estate mortgages, ground rents and income strips. The government’s reforms of the current Solvency II regime, known as Solvency UK, when implemented, will widen asset eligibility criteria. This could unlock over £100 billion of investment from insurers into the UK. Insurer long-term capital is particularly suitable for investments to decarbonise the economy, develop affordable and social housing, to make improvements to infrastructure and to support the UK’s world class science and research capabilities. SUSTAINABLE INVESTING Heightened government, regulatory and fiduciary focus alongside consumer activism has pushed environmental, social and governance (“ESG”) considerations up the agenda for UK defined benefit pension schemes. With new regulations for climate reporting introduced with the Pensions Schemes Act 2021, more trustees considering de-risking have sought assurance that ESG considerations underpin the asset choices in insurers’ investment portfolios. OUTLOOK In conclusion, the structural growth drivers for the defined benefit de-risking market continue to accelerate and the outlook for 2024 and beyond is exciting. The increase in gilt yields has reduced the estimated liabilities of defined benefit pension schemes and dramatically improved funding levels. Employee Benefit Consultants expect that this will translate into rising market volumes and that demand will remain strong over the long term. It is expected that c.£600bn of defined benefit scheme funds will move to de-risk over the next decade of which potentially more than £360bn could transact in the next 5 years (source: LCP). 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.

88% OF DEFINED BENEFIT PENSION SCHEMES ARE CLOSED TO NEW MEMBERS AND INCREASINGLY TO FUTURE ACCRUAL (%)

2023

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 2023

Source: The Purple Book 2023, PPF

EXPECTED GROWTH IN DB DE-RISKING TRANSACTIONS (£BN)

2023 (est.) 2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

Buy–in/Buy-out

Backbook acquisition

Source: Just analysis, LCP

12 | Just Group PLC | Annual Report and Accounts 2023

MARKET CONTEXT continued

• In 2020 the FCA announced they intend to complete further work on the suitability of advice and associated disclosure (known as “Assessing Suitability Review 2”). The review aimed focus on initial and ongoing advice to consumers taking an income in retirement. This work was paused and in January 2023 the FCA announced their intention to complete a thematic review assessing the advice consumers are receiving on meeting their income needs in retirement. The FCA aim to publish a report setting out their findings in Q1 2024. • The FCA will have greater rule making powers under the future regulatory framework legislation. 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. 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 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. The typical lifetime mortgage customer is around 71 years old, has a house valued at around £360,000 and borrows 23% of the property value. People are becoming increasingly positively disposed to accessing some of the equity in their homes to improve the quality of their later lives or to help their family. The compound annual growth rate of the lifetime mortgage market between 2011 and 2023 was 10.7% and this has attracted new providers to enter the market in the last few years. 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 As predicted in last year’s Annual Report, the LTM market experienced a decline in 2023, as the market and consumer demand adjusted to increased interest rates and the impact of increased inflation. The fundamental drivers of growth over the medium term remain intact and we forecast the market will return to growth towards the end of 2024. The primary drivers of growth 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; and • strong investment in advertising which results in people becoming aware of LTMs, combined with people becoming more disposed to using some of their housing equity.

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, typically, for as long as 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. In March 2018 the Financial Conduct Authority (“FCA”) introduced rules requiring pension companies to provide customers with a comparison to the best income available from the external market alongside the quotation from the incumbent firm. These requirements were subsequently strengthened and from January 2020 all firms are required to provide a medically underwritten comparison where a customer is eligible. This has provided new opportunities for Just 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 2023 was 70% up significantly from 56% in 2022 (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 defined benefit 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; • following the rise in UK interest rates, the level 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.

Strategic Report | Governance | Financial Statements | 13

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 just £46bn. In October 2022, following the UK Growth Plan announced by the Chancellor on 23 September 2022, a number of product providers adjusted and/or removed their products as the markets faced a period of significant interest rate volatility. This reduced the products available to customers. Since the November 2022 Autumn Statement many providers have returned to the market and the number of products available to customers has increased.

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 is revolutionising how lifetime mortgages are advised. In October 2020, the FCA wrote to Chief Executive Officers and board Directors of lifetime mortgage lenders and mortgage intermediaries. The FCA set out their view of the key risks these firms pose to their consumers or the markets in which they operate. They outlined their expectations of firms including how firms should be mitigating these key risks. The FCA stated they would be engaging with a number of firms across the industry. In September 2023, the FCA published the results from its targeted review carried out in the previous 12 months on later life mortgage advertising and advice. It found in many cases advice did not meet the standards expected. The FCA has required those firms which fell short to improve the quality of their advice. 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. On 7 September 2021, the UK Prime Minister announced plans to substantially increase funding for health and social care over the period (2022–2025), to be funded by a new tax, the Health and Social Care Levy. From October 2023, the government had planned to introduce a new £86,000 cap on the amount anyone in England will have to spend on their personal care over their lifetime. The cap was to apply irrespective of a person’s age or income. The government said that the publication of the November 2021 document marked the start of a period of co-production of the statutory guidance with the sector, building on draft regulations and guidance published in 2015. It added that this would be followed by a public consultation early in 2022 with the intention that the final regulations and guidance will be published in spring 2022. In the November 2022 Autumn Statement, the government announced a delay to the national rollout of social care charging reforms from October 2023 to October 2025. CURRENT MARKET AND OUTLOOK There is a substantial market for care in the UK. The drivers of the need for care are strong because: • 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.

EXTERNAL GIFL MARKET (£M)

0 1,000 2,000 3,000 4,000

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

LIFETIME MORTGAGE MARKET SIZE AND GROWTH RATE (£M)

2023

2022

2021

2020

2019

2018

2017

CAGR 10.7%

2016

2015

2014

2013

2012

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

NUMBER OF PEOPLE (MILLIONS) AGE 60 +

0 10 20 30 40

25%

26.2%

27.9%

28.9%

29.3% 30.7%

2022

2025

2030

2035

2040

2050

Source: Office of National Statistics

14 | Just Group PLC | Annual Report and Accounts 2023

BUSINESS MODEL Our business model converts the growth opportunities in our markets to deliver positive outcomes for customers, shareholders and colleagues.

KEY CHARACTERISTICS OF OUR BUSINESS MODEL

retirement expert with Specialist focus Risk Selection Product innovation

Cost Discipline Scalable operating model Focus on underlying organic capital generation

HOW WE CREATE VALUE Our sustainable business model organically generates capital to support our growth ambitions. We charge a margin on the initial amount received in exchange for accepting the risk over the lifetime of the policy. We invest the margin and our customers’ pension savings in high-quality assets, including the lifetime mortgages we originate, assessing related policy risks and our customers’ expected income levels. We ensure we are able to pay policyholder pensions as they fall due, whilst generating financial value for our business. GROWTH OPPORTUNITIES Due to the complexity of retirement and a growing ageing population with evolving needs, there is a significant opportunity to help more customers achieve a better later life through the products and propositions we offer via our multi-channel distribution strategy. Each and every current and future retiree will have a unique set of circumstances and be exposed to a number of risks. These risks include: • their defined benefit pension scheme running into financial difficulty; • running out of money;

WE CREATE VALUE FOR

SHAREHOLDERS Through our efficient resource management, we generate returns in excess of our cost of capital. Our approach to capital management is conservative and focused on maintaining our strong underlying organic capital generation, to grow our business and enable sustainable dividends. CUSTOMERS We utilise our medical underwriting expertise to fairly optimise the returns for our customers and we strive to deliver the best customer experience, making it as easy as possible for them to navigate the complexities of later life planning and events. Our robust business model ensures our customers can depend on us to pay claims over the long term. PARTNERS Corporate clients: our scalable retirement focused solutions create opportunities and solve problems for companies. Trustees and scheme sponsors: we provide solutions to de-risk pension liabilities and deliver member security. COLLEAGUES We focus on high-performance working, and secure a skilled and motivated team through the development, reward and recognition of our colleagues. ENVIRONMENT Our focused sustainability strategy aligns with how we operate, and the investment decisions we make aimed at benefiting the environment.

• being unable to plan their financial affairs; • unable to access to affordable financial advice; • increasing and uncertain care costs;

• not being able to achieve the lifestyle they had expected; • being invested in inappropriate products and securities; and • inflation outpacing their savings. Our sustainable and scalable business model is built to optimise value from our solutions that service these needs.

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