Just Retire. Share Discussion Threads

[masurenguy] 27/3/2009 07:19

RNS Number : 5833P
Just Retirement (Holdings) plc
27 March 2009

INTERIM RESULTS

HIGHLIGHTS

* Value of new business (VNB) for first half year of GBP21.8m, up 7% on
comparative period
* Embedded value of GBP131.6m (45p per share)
* Year end solvency ratio of 170% after allowing for conservative default
assumptions (previous estimate approximately 150%)
* Total assets under management up 43% year-on-year to GBP1.7bn
* Low risk investment portfolio with 50% held in gilts, cash and low-LTV mortgages
* Interim dividend maintained at 0.3p
* Current trading very encouraging
* Discussions ongoing in regard to possible offer for the Group

Commenting on the results, Mike Fuller, CEO, stated: "Just Retirement has faced the exceptionally challenging conditions of 2008 with two principle goals: profitability and capital strength. The results for the first six months of our financial year demonstrate that we have been successful in both aims. Our selective pricing policy has enabled us to protect annuity margins in the face of strong competition, albeit at a cost of a small and temporary reduction in sales volumes. We have been able to continue to grow our equity release business at highly favourable margins. "Despite the impact of the extraordinary economic conditions which have prevailed since the beginning of our financial year, we have been able to protect our capital position, which shows a solvency ratio of 170% as at 31 December 2008. This ratio has been computed after substantial allowance for default margins, notwithstanding that our year end fixed interest portfolio has a lower risk profile than many of our peers. Since the year end, the solvency ratio has continued to improve.

Current trading is very encouraging. Since the beginning of 2009, annuity rates have been reducing across the market, as competitors have followed capital preservation and pricing strategies similar to our own. As a consequence, Just Retirement's competitive position has returned to its traditional level and conversion ratios have improved markedly. The Group is currently experiencing historically unprecedented levels of application activity for annuities which will positively impact fourth quarter sales. By the same token and as a function of Just Retirement's funding methodology for
equity release mortgages, we continue to enjoy a strong competitive position
with a solid flow of business at attractive margins. Accordingly, we view the remainder of the year with increasing confidence."

Update on possible offer: On 10 November 2008 the Board of Just Retirement announced that it had received expressions of interest which could ultimately result in an offer for Just Retirement. Discussions are ongoing and a further announcement will be made in due course.

Dividend: The board proposes a maintained interim dividend of 0.3p. This is payable on 29th April to shareholders on the register as at close of business 17th April 2009.

Outlook: Just Retirement remains in a strong position from which to benefit from the continued and developing growth of the UK retirement market. Accordingly, the board looks forward to the future with increasing confidence.

[pejaten] 27/3/2009 01:17

Masurenguy... yes 27th. I am in Jakarta and 23.27 GMT is 26th for me :)

[masurenguy] 26/3/2009 14:48

Results are due tomorrow - March 27th !

[pejaten] 25/3/2009 23:27

Result due tomorrow... maybe after 5 month also news on the bid?

[masurenguy] 19/3/2009 08:04

OP Still accumulating !
.......................

Date of dealing
18th March 2009
OXBURGH PARTNERS LLP

CFD: Long: 10,070: 53.0186p

[warranty] 09/3/2009 08:56

Well, I wish they'd hurry up with a decision one way or the other because this uncertainty is frustrating for everybody. Still if it goes back down to 45p again it gives me a chance to top up. Either way this looks a good solid bet compared to most.

[masurenguy] 09/3/2009 07:25

Results to be announced on March 27th. Wonder if there will be any prior update on current negotiations !

[alanrex] 27/2/2009 22:26

the time taken to announce further news is quite frustrating for me!!

[masurenguy] 24/2/2009 13:44

Looks like some programmed buying in 3k lots commenced just before lunch - could there be some news in the pipeline !

[alanrex] 17/2/2009 16:43

sheffdaz, can i ask how you got your info?
personally believe given the size of the company and its position in the market place that it will be taken out. This is a gift for possible predators given the current market climate.

all imo dyor

[sheffdaz] 16/2/2009 23:19

TAKEOVER - I heard last week that there was 3 bidders in place, but leading was Cinven; can't remember other two.

The 'company' in my eyes looks like a good prospect even with the tides moving out. Mind; housing market decrease hasn't help,

THOUGHTS - if the price goes north I would pull, but otherwise I will rid it out; with HOPE

[alanrex] 16/2/2009 14:14

Masurenguy. I take heart from the last RNS. And more importantly i beleive in the long term story and think the share shold re rate with the market and financially sound ect

all imo dyor.

[masurenguy] 16/2/2009 14:00

Well I hope that you're right. However the Eidos deal was agreed just 4 weeks after the initial announcement that an approach had been received whilst JR is still in play 14 weeks after the initial approach announcement was made.

A deal for JR would prpbably be worth 400% more than the Eidos deal so it could take longer to materialize. Nevertheless there is still no news of any developments here !

[alanrex] 16/2/2009 13:48

just increased my holding. This is now my single largest share holding. Im hoping a similar scenario to the one at EID materialises. Even if a bid fails to come, then im in for a longer term but happy to do so.

all imo dyor etc

[alanrex] 08/2/2009 17:32

appears it was my mistake.. i was inferring that from your post. it appears i made a mistake?

[masurenguy] 08/2/2009 17:24

What leads you to draw that conclusion ? The comment in Thursdays update stated that 'discussions' (plural) were ongoing and that could indicate one or more bidders still in the frame.

"On 10 November 2008 the Board of Just Retirement announced that it had received expressions of interest which could ultimately result in an offer for Just Retirement. Discussions are ongoing and a further announcement will be made in due course."

[alanrex] 08/2/2009 16:56

reassuring that takeover talks are continuing although i got the impression maybe there is just one bidder left?

[masurenguy] 06/2/2009 07:21

RNS Number : 8984M
Just Retirement (Holdings) plc
05 February 2009

FIRST HALF 2008/9 NEW BUSINESS FIGURES

Just Retirement, the specialist UK life assurance group focusing on the
provision of financial services to those at or in retirement, today announces
its new business figures for the six months to 31 December 2008, together with
an update on the current business background.

HIGHLIGHTS

* Profitable annuity sales driven by selective pricing strategy
* Strong market position in equity release
* Overall sales down only 8.6% despite turbulent market conditions
* Robust solvency ratio at 31st December 2008 of approximately 150% using
conservative default allowance
* Revised EV assumptions reflecting current credit markets drive material increase
in new business value compared with prior basis
* Discussions continuing in regard to possible offer for the company

+-------------+----------+----------+--------+
| | 6 | 6 | |
| | months | months | |
| | ended | ended | |
+-------------+----------+----------+--------+
| GBPm | 31 | 31 | % |
| (unaudited) | December | December | change |
| | 2008 | 2007 | |
+-------------+----------+----------+--------+
| Annuity | 272.1 | 313.1 | -13.1% |
| Policies | | | |
+-------------+----------+----------+--------+
| Equity | 81.8 | 73.9 | 10.7% |
| Release | | | |
| Mortgage | | | |
| Advances | | | |
+-------------+----------+----------+--------+
| Group | 353.9 | 387.0 | -8.6% |
| Total | | | |
+-------------+----------+----------+--------+

Mike Fuller, Chief Executive of Just Retirement, commented: "Our first half sales performance reflects the Group's focus on profitability given the challenging market conditions for annuity writers. A significant level
of deferrals compounded by reduced maturity values in pension plans impacted
sales volumes, while unprecedented widening in credit spreads on corporate bonds affected the pricing environment and the value of our assets under management.

Against this background, we have deliberately priced to win more profitable
annuity business, securing over GBP270m of annuity sales at positive margins.
Critically, we have grown our equity release sales by 11% in the six months. We have also revised our embedded value assumptions to reflect better the way we believe credit defaults will emerge versus current implied spreads.

Current trading remains in line with our expectations, while the revised
embedded value assumptions will drive a material increase in full year new
business value compared to the prior basis. We have a robust capital position,
strong cashflows, are writing profitable business and are well-positioned in a
market poised for substantial growth when normal conditions return."

[pejaten] 06/2/2009 07:19

Not that bad really....


FIRST HALF 2008/9 NEW BUSINESS FIGURES

HIGHLIGHTS

Profitable annuity sales driven by selective pricing strategy

Strong market position in equity release

Overall sales down only 8.6% despite turbulent market conditions

Robust solvency ratio at 31st December 2008 of approximately 150% using conservative default allowance

Revised EV assumptions reflecting current credit markets drive material increase in new business value compared with prior basis

Discussions continuing in regard to possible offer for the company


'Our first half sales performance reflects the Group's focus on profitability given the challenging market conditions for annuity writers. A significant level of deferrals compounded by reduced maturity values in pension plans impacted sales volumes, while unprecedented widening in credit spreads on corporate bonds affected the pricing environment and the value of our assets under management.

Against this background, we have deliberately priced to win more profitable annuity business, securing over £270m of annuity sales at positive margins. Critically, we have grown our equity release sales by 11% in the six months. We have also revised our embedded value assumptions to reflect better the way we believe credit defaults will emerge versus current implied spreads.

Current trading remains in line with our expectations, while the revised embedded value assumptions will drive a material increase in full year new business value compared to the prior basis. We have a robust capital position, strong cashflows, are writing profitable business and are well-positioned in a market poised for substantial growth when normal conditions return.'

[alanrex] 30/1/2009 08:11

john-v, i just posted the answer? its relevant cos its a takeover situation?

[masurenguy] 30/1/2009 08:09

Checkout

In the meantime the price continues to decline !

[johnv] 29/1/2009 17:08

Aanrex,

You dont know either, does anyone know?

[alanrex] 29/1/2009 08:47

Johnv


DEALINGS BY CONNECTED EXEMPT PRINCIPAL TRADERS (EPT)
WITH RECOGNISED INTERMEDIARY STATUS
DEALING IN A CLIENT-SERVING CAPACITY
(Rule 38.5(a) of the Takeover Code)

in other news
and the slide continues...!!

[johnv] 28/1/2009 10:33

can someone explain to myself what the ept disclosures are? thanks in advance.

[alanrex] 26/1/2009 19:08

thats what i was implying...

all imo dyor