Just Group share price soars after policy update

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Just Group share price soars after policy update
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FTSE 250 retirement specialist Just Group (LON:JUST) has seen its share price surge by 20.71% to 99.10p (as of 14:15 GMT) after the Prudential Regulation Authority published a policy statement on equity release mortgages. The company said that it had already structured its future offers in line with proposals outlined in the consultation paper published earlier this year, but the 31st December 2019 implementation date gives the board time to consider dividend and new business policy.

CEO Rodney Cook commented: “We welcome the greater clarity provided by the Policy Statement, and the PRA’s recognition of the important role played by ERMs for our customers as they plan their retirement finances. The regime envisaged is considerably less onerous for Just than set out in the CP, particularly in respect of pre Solvency II business, and the outcome is well within the range of what we have been planning for. However, even at the 13%/1% parameters confirmed today, we view the EVT as very prudent, as for JRL2 it is equivalent to holding capital and technical provisions sufficient for the price of every house in the portfolio to fall immediately by over 35% and then remain there indefinitely. The changes prescribed by the Policy Statement do not take effect until 31 December 2019. This means the Board can evaluate the optimal capital structure to support our new business franchise in a considered manner.

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