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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