STRATEGIC REPORT
7
I am pleased to introduce Just Group plc’s 2020 Annual Report, my first since becoming Chair in August 2020. We have continued to strengthen the capital position of the Group, increasing our resilience and delivered an excellent operating performance. I’m delighted to have joined the Company to lead the Board. I’ve received a warmwelcome and have been hugely impressed by the quality of colleagues I have had an opportunity to meet across the Group. Before commenting on the Company’s performance, on behalf of the Board I would like to express our gratitude to my predecessor, Chris Gibson-Smith. Chris was Chair of Just Group since its creation, overseeing a transformational merger and navigating significant regulatory change. He has steered the Group through some very challenging times and takes with him our best wishes for the future. OUR PRIORITY IN 2020 Our first priority in 2020 has been to ensure the wellbeing of our colleagues and our customers in response to the global COVID-19 pandemic. David Richardson and his team have demonstrated outstanding leadership in their considered and rapid response. Within days, 99% of our colleagues had been equipped with new technology and other equipment to enable them to work at home productively. All of our colleagues remain on full pay and the Group has not used the government’s job retention scheme. We maintained the delivery of all the Group’s services to customers, most of whom are in the more vulnerable groups. To support our customers through this difficult period, we have made a number of changes to our products and services. You can read more about these changes and the support we have provided to our colleagues throughout this report. In the 2018 and 2019 Annual Reports we set out the uncertainty presented to Just and other companies in the industry resulting from the Prudential Regulation Authority’s (“PRA”) consultation and policy statements into the treatment of equity release mortgages being held to back annuity liabilities. The impact on the Group over this period has been significant. In 2019 the Board instigated a less capital intensive strategy. David Richardson and his team’s response to adapting the business model has been disciplined and focused and we are improving our organic capital generation. Additionally, they have demonstrated strong competence in delivering their commitments by executing a wide programme of management actions over a two year period to improve the Group’s capital position. We continue to engage constructively with the PRA and although our solvency position continues to strengthen, regulatory scrutiny remains high and some uncertainty and risk remains, further details of which are set out in the principal risks and uncertainties section, and in note 35, Capital. The Group’s financial strength and performance is explained in detail in the Business Review. DIVIDEND Whilst the Group has made significant progress to build its capital base to accommodate the regulations on equity release mortgages and to start to grow its underlying capital generation, the external environment as we emerge from the pandemic continues to be uncertain. The Board therefore considers that it would not be appropriate to recommend recommencing dividend payments and will continue to keep this situation under review.
BOARD COMPOSITION AND GOVERNANCE I am pleased to welcome Kalpana Shah who joined the Group Board on 1 March. She has considerable commercial and insurance experience which will benefit our Group. I take great pride in leading the Board and the Group’s governance function, and my introduction to the Corporate Governance Report provides further information on our governance and decision making processes. I would like to thank the entire Board for their significant contribution, and look forward to working with them in 2021. 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 across the Group promote the success of the Company. OUR PURPOSE Before joining the Company, as I began my conversations with members of the Board, I was immediately drawn to the powerful purpose that sits at the heart of Just. Just’s purpose is compelling, clear and acts as a beacon for colleagues across the entire Group to live the purpose every day. Quite simply, we help people achieve a better later life. We achieve this by providing financial advice, guidance, competitive products and services and we help our customers achieve security, certainty and provide themwith peace of mind in retirement. CONTRIBUTING TO A GREENER, MORE SUSTAINABLE FUTURE In support of our important role in helping the world transition towards a sustainable environment and low-carbon global economy, I was delighted that Just became the first UK insurance company to launch a Green Bond. You can read more about this on page 18. OUTLOOK The fundamental drivers for growth in our core markets continue to be strong. We have met our commitment to achieve capital self-sufficiency this year which puts us in a strong position to selectively grow our business and create value for shareholders. We are continuing to increase our resilience with further planned actions to reduce our capital sensitivity to our residential property exposure. The commercial outlook remains favourable for our Group. On behalf of the Board, I would like to close by thanking all of our colleagues across the Group for their exceptional agility in responding to the pandemic and for their commitment to providing the best service possible to our customers and business partners. We are building a stronger, more resilient Just company that can be increasingly optimistic about the future.
ANNUAL GENERAL MEETING 2021 10.00 am 11 May 2021
at Just Group plc Enterprise House Bancroft Road Reigate Surrey RH2 7RP
Powered by FlippingBook