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Trading statements

JRP Group total sales up

03 November 2016 08:18

JRP Group's total sales rose 21% in the nine months ended 30 September on a pro forma basis.

Guaranteed income for life sales were up 12% at £603.8m; defined benefit de-risking sales incerased by 29% to £578.4m and lifetime mortgage advances rose by 27% to £464.7m, all on a pro forma basis.

Other highlights: - Solvency II SCR coverage ratio at 30 June 2016 would have risen to an estimated 151%, had the recently issued £250m in Tier 2 debt proceeds been in place

- IFRS new business margin guidance of 6% reaffirmed for the full calendar year

Group chief executive Rodney Cook said: "The benefits of the merger to the JRP Group continue to be demonstrated through both strong sales growth announced today and favourable margin development announced in September. Total sales were up 21% on a pro forma basis in the nine months, and 54% in the quarter ended September.

"We remain comfortable with our guidance of a 6% IFRS new business margin for the full calendar year and this represents levels last achieved before the pension freedoms were announced in 2014. As we disclosed at interims, we are ahead of schedule in delivering the synergy benefits of at least £45m per annum with the full run-rate being achieved by 2018.

"The strong recovery of our business is demonstrated by our Retirement Income sales of £640.8m in the three months ended September. This compares to sales of £619.2m in the preceding six months which were impacted by a slow start to the year for Defined Benefit De-risking sales. Mortgage advances have continued to be strong, and are still ahead of our 25% of Retirement Income target for the year to date.

"We are successfully adapting our business model to the new capital environment and remain confident of achieving attractive internal rates of return on new business once the synergy benefits are fully realised, well in excess of the recent cost of debt and our weighted average cost of capital. The combination of increased margins, strong synergy delivery and sound capital position confirm the sustainable growth which our business model can deliver.

"We are pleased with the support we have received from institutional investors to our recent £250m Tier 2 capital transaction and this demonstrates their confidence in the Group's business model and its prospects."

At 8:18am: (LON:JRP) JRP Group PLC share price was +4.4p at 127.4p

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