In its interim results, the group said the fall was because of its “ongoing pricing discipling” and the quieter lifetime mortgage market, which more than halved to £1.4bn.
Just said lifetime mortgages were still an “attractive asset class” but because of higher interest rates the initial loan to value (LTV) available to borrowers had decreased.
In H1, the average LTV in its lifetime mortgage portfolio was 36.5 per cent, down from 37.3 per cent as of 31 December 2022.
It said it “continued to be selective” in the mortgages it originated and would use insight and distribution to target certain parts of the market.
At £5.2bn, Just said lifetime mortgages made up 24 per cent of its investments portfolio. The group said this would fall over time as it originates fewer new lifetime mortgages and diversifies its portfolio with other illiquid assets.
Surge in profit
The group’s underlying profit jumped 154 per cent to £173m in H1 which it said was driven by higher new business profits.
Just said it expected the “momentum” to continue into the second half of the year.
The operating result for the group’s other companies was a loss of £8m, steeper than the £7m loss during the same period last year.
It said this was down to costs from its holding company, Just Group plc, and the Hub group of businesses which includes its advice firms.
Over the period, its retirement sales more than doubled with £1.9bn in defined benefit sales and £500m in retail guaranteed income for life business.
David Richardson, group chief executive of Just, said: “We have delivered another impressive set of results and we are highly confident that we will comfortably exceed our 15 per cent profit growth pledge this year.
“Our defined benefit business is going from strength to strength and I am delighted that our retail business has returned to growth. We are growing sustainably and are exceptionally well positioned to continue benefiting from the positive drivers and favourable demographics supporting both of our principal markets.
“We have a growth mindset and we’ve developed a winning formula – one which will ensure we fulfil our purpose, to help people achieve a better later life, while building substantial value for shareholders.
“Over the last four years, our performance has consistently exceeded the commitments we have made and we’re more optimistic than ever about the future for Just.”
