By Yamini Kalia and Chandini Monnappa
(Reuters) – British insurer Just Group’s shares fell more than 17% on Friday despite its annual operating profit rising on strong demand for pension insurance, with analysts citing a lack of information on its future prospects.
The UK’s pension insurance sector is growing more competitive as demand for bulk annuities – insurance for corporate pension schemes – surges as companies increasingly look to offload their pension scheme risks to insurers.
British pension insurance deals reached 45 billion pounds in 2024, with 40 billion to 50 billion pounds expected in 2025 and new players coming to the market, according to a January report.
“We are seeing a couple of new entrants come in and we’re comfortable with that … there’s actually a lot of business to go around,” Just Group CEO David Richardson said.
Annual operating profit came in at 504 million pounds ($651.07 million), just above the 499 million pound figure forecasts by analysts in a company-compiled poll.
The company said it managed to meet its five-year target of doubling profit in just three years and declared a dividend of 2.5 pence per share, up 20% from a year ago.
However, the positive top line numbers did little for investors and shares fell as much as 17.3% to 135 pence.
“The market is used to Just shooting the lights out, this time it didn’t and whilst it met its target of doubling profit, it didn’t set any new targets,” Barrie Cornes, an analyst at Panmure Liberum said.
“The only explanation we have is that the group did not give updated guidance,” Jefferies analysts said in a note.
Just Group shares have risen 90% in the last twelve months as of Thursday’s close.
The company’s IFRS pre-tax profit came in at 113 million pounds for 2024, below Peel Hunt’s estimated 129 million pounds.
($1 = 0.7755 pounds)
($1 = 0.7741 pounds)
(Reporting by Yamini Kalia and Chandini Monnappa in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)
