Just Group CEO says ‘not actively’ considering sale
07 SEP 2018
Just Group’s [LON:JUST] chief executive Rodney Cook has said the UK-based life insurance company is not “actively” considering a sale of the business, The Daily Telegraph reported. Cook said it is difficult to consider selling when the company does not know what impending regulatory review of equity release mortgages will involve.
Just Group informed shareholders that it is considering a variety of outcomes ahead of the results of a consultation by the UK’s Prudential Regulation Authority (PRA).
Analysts cited by the newspaper suggested last weekend that Just Group could either launch a cash call or put itself up for sale depending on the outcome of the PRA consultation.
The company also said it will delay dividend payments until the PRA announces any new measures.
Just Group’s share price has slumped since the beginning of the PRA’s review in July, the item noted. The PRA will make a decision later this month, which could force insurers to set aside additional capital, the report said.
One source cited by the newspaper said the UK-based insurer Legal & General [LON:LGEN] would be an “ideal” buyer for Just Group.
Just Group reported its 1HY18 results on Thursday, 6 September, which showed an 85% increase in adjusted operating profit to GBP 124m (EUR 137m).
Just Group’s market capitalisation stood at GBP 825m at the close of trading in London on Thursday.