Just Group profits have surged 47 per cent, as the firm, which specialises in financial products for the retirement market, benefited from higher interest rates.
The firm reported an underlying operating profit of £377m in its full-year results for 2023, four per cent ahead of consensus.
It added it expected at least 12 per cent underlying operating profit growth this year.
“We have never been stronger,” bragged chief David Richardson.
“We’ve delivered an exceptionally strong performance and are extremely well positioned to continue benefiting from the positive drivers and favourable demographics supporting both of our markets,” he said.
The two arms of the business, retirement income sales and defined benefit de-risking saw growth of 24 per cent and 21 per cent in sales, respectively.
It noted that the guaranteed income for life (GIfL) market had grown to its highest level in a decade, up 46 per cent to £5.3bn. These strong structural growth drivers were expected to carry “well into the future”.
RBC analysts Mandeep Jagpal and Sarah Chong said the growth had also been “supported by disciplined pricing and opportunistic use of funded reinsurance”.
Richardson continued: “We are delighted with our financial performance in 2023, a record year for the group, and are confident of exceeding our medium term profit growth pledge.
“As such, we now expect to achieve our target of doubling profits in three years instead of the originally intended five. Given the multiple opportunities available and strong structural growth drivers in our chosen markets, we have never been more confident in our ability to deliver sustainable and compounding growth.
“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.”