Just group PLC | Annual Report and accounts 2022
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
Focus on organic capital generation
Specialist focus
Risk Selection
Product innovation
Cost Discipline
Scalable operating model
HOW WE CREATE VALUE
WE CREATE VALUE FOR
We have created a sustainable business model that organically generates capital to support growth. We assess the risks related to the policies we sell and how much income we expect to provide to our customers. 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. This generates financial value whilst ensuring we are able to pay policyholder pensions as they fall due.
SHAREHOLDERS By managing our resources effectively, we generate returns in excess of our cost of capital. We manage our capital conservatively and are focused on increasing our underlying organic capital generation to grow our business and service capital providers, enabling sustainable dividends. CUSTOMERS We use our medical underwriting to fairly optimise the returns for our customers. In addition, we strive to deliver the best experience for our customers, making it as easy for them as possible to navigate the complexities of later life planning and events. In addition, our resilient business model ensures our customers can rely on us to pay claims over the long term. PARTNERS Corporate clients: we create opportunities and solve problems for companies using our scalable retirement-focused solutions. Trustees and scheme sponsors: we provide member security and de-risk pension liabilities.
GROWTH OPPORTUNITIES
We have a growing ageing population with evolving needs. The complexity of retirement and therefore inertia amongst those approaching, at or in-retirement provides us with 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; • being unable to plan their financial affairs;
COLLEAGUES We develop, recognise and reward our colleagues to secure a skilled and motivated team, with a focus on high-performance working.
• 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.
ENVIRONMENT We help the environment through how we operate and the investment decisions we make, which align with our focused sustainability strategy.
Our solutions service these needs, and our scalable and sustainable business model is built to optimise value from those solutions.
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