Just Group (LSE:JUST) reported a significant fall in annual earnings on Friday, with results impacted by weaker margins on new business and reduced sales in its retirement income segment.
Underlying operating profit declined 39% to £305 million for the year ended 31 December, compared with £504 million in the previous year. Adjusted profit before tax also fell sharply, dropping to £120 million from £482 million, reflecting softer core operating performance.
“During 2025, our proactive approach to managing our capital resources, pricing discipline and risk selection meant that we deliberately reduced volume in what was an increasingly competitive Defined Benefit de-risking (“DB”) market,” said David Richardson, CEO of Just Group.
“Industry analysts expect a rebound in the DB market in 2026, driven by renewed demand from sponsors and trustees, and our own pipeline supports this outlook. In addition, the retail guaranteed income market offers significant long-term growth potential in the decades ahead,” he added.
Sales within the Retirement Income division fell 18% year on year to £4.3 billion, down from £5.3 billion previously.
Margins on new business narrowed to 5.7%, compared with 8.7% in 2024, as competition intensified — particularly in the Defined Benefit market during the second half of 2025 — alongside tighter pricing spreads, lower transaction volumes and a less favourable product mix.
Despite the earnings decline, tangible net assets increased to £2.7 billion from £2.6 billion, representing growth of 37% over the past three years.
The company also confirmed that it agreed in late July to a £2.4 billion ($3.23 billion) acquisition by Canada-based Brookfield Wealth Solutions, with completion expected during the first half of 2026.
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