Just Group PLC (LSE:JUST) reported 154% growth in underlying operating profit for the first half of the year and said it was confident of beating previous guidance for the full year, as its section of the retirement income market benefited from the rise in interest rates.
Shares in the FTSE 100-listed life insurer jumped almost 5% to 86.4p in early deals before tumbling momentarily into the red and then bouncing back to positive territory before the first hour of trading was done.
The retirement income group posted half-year results showing an underlying operating profit of £173 million compared to £68 million a year earlier, which it said had been driven by significantly higher new business profits.
The rise in interest rates last year and so far in 2023 "has a positive effect on both the defined benefit and retail guaranteed income for life markets", it said, with DB sales up 149% and retail sales up 54%.
An interim dividend of 0.58p per share, up 15% on a year ago, was declared.
"Given the very strong profit growth in the first half of 2023, we are highly confident of comfortably exceeding 15% growth in underlying operating profits for the full year," the company said, with the performance so far this year and positive outlook further supporting confidence in delivering 15% growth in underlying operating profit per year, on average over the medium term.