Just Group says gross sales of its lifetime mortgage advances slumped by 68% to £164m in comparison with a 12 months in the past, because it appears to concentrate on different areas in later life monetary companies.
The listed monetary companies group noticed its fairness launch business endure as larger rates of interest hit demand.
The unit underperformed the broader market, as lending on this sector tumbled 62% to £2.1bn final 12 months as plan gross sales and drawdowns fell, in response to Key’s Equity Release Market Monitor 2023 final month.
Earlier this week, Legal & General stated its lifetime mortgage advances, together with retirement interest-only home loans, plummeted 53% to £299m from a 12 months in the past as larger rates of interest put this business underneath stress.
However, Just Group will concentrate on faster-growing areas, corresponding to retirement revenue gross sales from annuities, relatively than attempting to raise its fairness launch business.
“Lifetime mortgages at £5.7bn represent 24% of the investments portfolio, which we expect to continue drifting lower over time as we originate fewer new lifetime mortgages and diversify the portfolio with other illiquid assets,” the group says in its full-year outcomes assertion.
The listed group posted underlying working revenue up 47% to £377m, boosted by retirement revenue gross sales, which jumped 24% to £3.9bn.
Its outlined profit pension gross sales “continues to thrive” lifting 21% to £3.4bn from a 12 months in the past.
Just Group chief government David Richardson says he’s “assured of exceeding our medium-term revenue progress pledge.
“As such, we now count on to realize our goal of doubling income in three years as a substitute of the initially meant 5.
“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.”
Shares within the agency jumped 14.8% to 102.4p in late buying and selling.
