Just Group has posted a 44% jump in its underlying operating profit to £249m in its first half results.

The financial services group, which specialises in retirement products, said the figure was driven by new business sales growth, higher recurring in-force profit and operational gearing.

Just Group’s latest trading statement covered the six months to 30 June this year and also showed that its retirement income sales have grown by 30% to total £2.5bn, up from £1.9bn in H1 last year.

The firm suggested that its momentum “remains strong” going into the second half of 2024 and has forecast a similar level of business volumes in H2, with the strong structural growth drivers of Just Group’s markets anticipated to continue well into the future.

CEO at Just Group, David Richardson, said: “We are delighted with the strong momentum in our business driven by the multiple opportunities available and structural growth in our chosen markets. Our DB and retail businesses both contributed to this excellent performance, reflecting our continuing investment in technology and talent.

“Given the strong first half outcome, the positive market dynamics, and our forward-looking pipeline, we expect to substantially exceed previous 2024 guidance of doubling 2021's £211m operating profit in three years.”

Just Group also said it has delivered for its shareholders in H1 after reporting an improved return on equity to 15.6%, as well as an interim dividend of 0.7p per share.

The dividend represents 20% growth and one third of the 2023 full year dividend, in line with the group’s stated policy.

AJ Bell investment director, Russ Mould, commented: “Higher interest rates might not be to everyone’s taste but a relative normalisation in the headline cost of borrowing, bond yields and returns on cash continues to benefit Just Group, as its bulk annuities business continues to gather momentum and retail annuity sales grow strongly after years in the doldrums.

“Return on equity is now comfortably in the mid-teens percent, the dividend is growing, and management now feels confident enough to upgrade its prior forecast that profits would double by this year compared to 2021’s outturn of £211m.”

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