Retirement products firm Just Group PLC (LON:JRP) reported a 17% increase in new business sales for the third quarter, driven by growth in the division that supplies defined benefit pension scheme de-risking.
Total new business sales rose to £765mln in the three months to September 30 from £656mln a year ago.
Retirement sales grew 15% to £595mln with defined benefit de-risking sales up 35% to £363mln, guaranteed income for life (GlfL) sales down 8% to £201mln and care plans down 3% to £17mln.
New business sales in the lifetime mortgage loans advanced division gained 25% to £170mln.
Chief executive Rodney Cook said: "I am pleased to report another excellent quarter, demonstrating the strength of the group's positioning and strategy.”
He added: “The defined benefit market has seen increased activity all year and the industry pipeline is very strong. In the GIfL market, shopping around continues to grow as a proportion of the total, helped by Financial Conduct Authority initiatives. Customer appetite for lifetime mortgages is increasing and supply from insurers is growing, all helping to stimulate strong market growth.”
Just Group braces for new equity release mortgages rules
Cook said the company strengthened its pricing discipline during the quarter ahead of a potential increase in capital requirements under proposed changes in the Prudential Regulation Authority’s (PRA) consultation paper (CP)13/18.
He said the price increases will affect sales in the final quarter but the company remains “confident of delivering a strong performance for the year”.
The PRA’s proposals refer to lifetime mortgages, which allow homeowners to borrow against the value of their property and only pay back the loan when they die.
Last week the PRA said it would delay the implementation of the new rules by a year to no sooner than 31 December 2019 in order to “clarify the position for insurers planning their year-end 2018 processes”.
READ: Just Group shares jump on delays to introduction of new equity release rules
“A longer implementation period provides greater flexibility to execute any necessary capital management actions,” Cook said.
Just Group said it has received no further clarity on the consultation but is preparing for a wide range of possible outcomes and remains in constructive dialogue with the PRA.
Shares rose 3.02% to 92.15p in morning trading.