DB De-risking with Just a little book of numbers

Transcription

1 FOR MORE INFORMATION contact Rob Mechem Head of DB Business Development Tel: wearejust.co.uk/definedbenefit DB De-risking with Just a little book of numbers For professional financial advisers and pension trustees only. Not approved for use by pension scheme members, employees, or any other persons. Just is a trading name of Just Retirement Limited ( JRL ), Just Retirement Money Limited ( JRML ), Partnership Life Assurance Company Limited ( PLACL ) and Partnership Home Loans Limited ( PHLL ) which are subsidiary companies of Just Group plc. JRL is registered in England and Wales, with company number JRML is registered in England and Wales, with company number The registered office for both JRL and JRML is Vale House, Roebuck Close, Bancroft Road, Reigate, Surrey, RH2 7RU. PLACL is registered in England and Wales, with company number PHLL is registered in England and Wales, with company number The registered office for both PLACL and PHLL is 5th floor, 110 Bishopsgate, London EC2N 4AY. JRL and PLACL are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. JRML and PHLL are authorised and regulated by the Financial Conduct Authority. Calls may be monitored and recorded, and call charges may apply. 1 For professional financial advisers and pension scheme trustees only. Not approved for use by pension scheme members, employees, or any other persons. De-risking with Just - A little book of numbers 2

2 Introduction to our group Just Group is a FTSE listed specialist UK financial services company. We re a leading and established provider of retirement income products and services to individual and corporate clients. As well as DB de-risking, we operate in the Lifetime Mortgage and guaranteed income for life markets. All figures are correct as at 31 December retirement income sales in 2017 of almost 1.9bn We have over 1000 staff located across the uk We ve helped more than 500,000 customers achieve an improved retirement we have over 18bn in assets under management Retail annuity payroll of over 500m per annum 2 De-risking with Just - A little book of numbers 3

3 our defined benefit track record We ve been operating in the Defined Benefit de-risking market since During this short time we ve established an enviable track record of buy-ins and buy-outs. With our financial strength, unique proposition and administration capability, we believe this adds up to a compelling package. We ve transacted policies covering over 20,000 members 4 de-risking sales of nearly 4bn since % share of the bulk annuity market A dedicated and growing DB team of 60 people. We re specialists, so transition with us is smooth and our administration team ensure payments are accurate and timely. Transactions completed between 1 million for segments between 1 member 245 million 1,200 members over 135 transactions completed since 2012 including 30 buy-outs 2017 was our 5 th anniversary of DB de-risking De-risking with Just - A little book of numbers 5

4 Financial strength Our business model is capital efficient it helps us price competitively. Our IP in medical underwriting helps us estimate longevity accurately and price our products accordingly. 6 A STRONG/STABLE The insurer financial strength rating for Just Retirement Limited at August 2017 from global rating agency Fitch We estimate our solvency capital requirement coverage ratio would have been 156% if the tier 3 capital raised in February 2018 had been in issue at the year-end 2017 We have a free surplus of just under 900m We enjoy a group embedded value of 2bn (the future profits from our existing business) We re a FTSE listed company - our business model focuses on DB de-risking and the retail distribution of Lifetime Mortgage and guaranteed income for life solutions. Market capitalization of over 1.2bn at 6 April % the protection provided by the Financial Services Compensation Scheme for trustees and policyholders for the DB benefits insured with us De-risking with Just - A little book of numbers 7

5 Our proposition We do things differently. We ve innovated our proposition, building on our medical IP to offer guaranteed medically and standard priced bulk annuity solutions to give trustees a choice you won t get elsewhere. On average we write to 50% of members when we re underwriting Our medical underwriting questionnaire is easy to complete and achieves an average response of nearly 65% Our dedicated and experienced team have medically underwritten over 4600 members and dependants We offer 5 MEDICAL AND STANDARD PRICING SOLTUIONS - THESE DELIVER REAL choice for trustees that others don t offer We re experts in medically priced de-risking solutions and have medically underwritten over 70 transactions since 2012 We reinsure 55% longevity risk for medically underwritten transactions and 75% for standard transactions 8 De-risking with Just - A little book of numbers 9

6 Administration capability When you transact with us, you re buying more than a de-risking policy. You re buying decades of experience that can guide you and your administration partner through the buy-in and buy-out processes. We ll advise on data cleansing, the set-up and checking of shadow payments at member level. These are valuable preventative and diagnostic controls that support your risk framework and ensure members are getting the benefits they re due. over 2,000 DB policyholders paid each month 1 st where we put you and your members! We re here to serve trustees with transactions up-to 250m in value and we ll continue to develop our proposition to ensure it provides value and choice for trustees and employers. Annual DB payroll of over 150m in 2017 Over 100 buy-in payments monthly nearly 17,000 pensioners covered by buy-in policies When you re ready to de-risk through buy-in or buy-out, we re ready to support you, your advisers (EBCs and legal representatives) and your sponsoring employer AND WE NEVER FORGET WE RE HERE TO PROTECT THE FUTURE PENSION PAYMENTS OF YOUR MEMBERS AND OUR POLICYHOLDER CUSTOMERS 10 De-risking with Just - A little book of numbers 11