Just Group reports lower volumes, margins ahead of acquisition by Brookfield

(Sharecast News) - Just Group reported lower volumes and margins in a more competitive retirement income market during 2025 on Tuesday, as pricing discipline and tighter credit spreads weighed on new business, while the insurer reiterated expectations that its agreed acquisition by Brookfield Wealth Solutions would complete in the first half of 2026. The FTSE 250 retirement income specialist said shareholder-funded retirement income sales fell 18% year on year to £4.3bn, reflecting a sharp slowdown in defined benefit de-risking activity despite strong growth in guaranteed income products.

Defined benefit de-risking sales declined 28% to £3.1bn, even as Just completed a record 130 transactions during the year.

The company said the reduction in volumes was driven by a lack of large deals, with five transactions above £100m completed in 2025 compared with nine such deals in the prior year.

Guaranteed Income for Life sales rose 23% to £1.3bn, with Just saying it continued to grow ahead of the market due to improvements in its adviser proposition and ongoing investment.

The firm highlighted the long-term growth potential of the segment, underpinned by expanding defined contribution pension pots and greater adviser adoption of guaranteed retirement income solutions.

Overall new business margins for the year were expected to be around 6%, down from 8.7% in 2024, reflecting tighter spreads, lower volumes, a shift in business mix and heightened competition, particularly in the second half.

Just said it remained focused on returns, continuing to write business at or above its target mid-teen internal rate of return on shareholder capital, despite unusually competitive pricing conditions in large defined benefit schemes.

Market conditions in defined benefit de-risking were described as uneven during the year, with Just noting that total market volumes fell to around £40bn in 2025 amid fewer very large transactions.

Activity picked up in the second half following the publication of the Pensions Bill in June, with approximately £30bn of transactions completed in the latter part of the year, compared with £10bn in the first half.

Year-end Solvency II capital coverage was lower than at mid-2025, driven by business growth, transaction costs related to the Brookfield deal, property valuation movements and regulatory changes affecting long-term measures. All figures are unaudited.

"The proposed combination with Brookfield Wealth Solutions Ltd will be a great outcome for customers, shareholders and our colleagues," said David Richardson, group chief executive.

"It reflects the strength of the Just platform and the long-term value of the strategy we have developed."

He added that during 2025 the group had "sacrificed volume in what was an increasingly competitive trading environment, combined with tightening credit spreads", leading to lower new business margins.

At 1012 GMT, shares in Just Group were down 0.23% at 216p.

Reporting by Josh White for Sharecast.com.