Berenberg starts coverage of Just Group at ‘buy’, highlights attractive business model

Berenberg initiated coverage of Just Group on Tuesday with a ‘buy’ rating and 209p price target.

  • Just Group
  • 08 July 2025 12:29:11
Just Group

Source: Sharecast

It noted that Just Group - which sells annuities in the UK - creates value by investing around 45% of new annuity funds in illiquid assets.

Just Group’s main target metric is tangible net asset value (TNAV) the sum of tangible shareholders equity and the contractual service margin (CSM) net of tax, it said.

"The TNAV compound annual growth rate was 16% over 2022-24, Just Group targets a greater than 12% return on equity, which is the main driver of TNAV growth, and we forecast a 13% TNAV CAGR 2024-28E, which is an attractive and sustainable growth rate in our view," Berenberg said.

The bank also highlighted an "attractive" business model. It said Just Group differentiates itself from other life insurance providers in three ways.

"It is very focused as it only sells one product - annuities, in one country - the UK. It is innovative and runs a pricing tool (Beacon) on which it has pre-loaded more than 350 DB schemes; this helps accelerate sales to smaller schemes.

"It invests 45% of the funds for new annuities into illiquid credits, which means it can earn a circa 200 basis points spread over the risk-free rate on the funds invested, while offering policyholders an attractive circa 30bp spread over the risk-free rate."

At 1225 BST, the shares were up 1.6% at 130.60p.

Exchange: London Stock Exchange
Sell:
0.00
Buy:
0.00
Change: -4.77 ( -0.02 %)
Date:
Prices delayed by at least 15 minutes

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

Bank of Scotland is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.

Important legal information

Bank of Scotland Share Dealing Service is operated by Halifax Share Dealing Limited. Halifax Share Dealing Limited. Registered in England and Wales No. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Logo Allfunds

The information contained within this website is provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd unless otherwise stated. The information is not intended to be advice or a recommendation to buy, sell or hold any of the shares, companies or investment vehicles mentioned, nor is it information meant to be a research recommendation. This is a solution powered by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd incorporating their prices, data news, charts, fundamentals and investor tools on this site. Terms and conditions apply. Prices and trades are provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd and are delayed by at least 15 minutes.

FE fundinfo Logo

Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

Refinitiv Logo

© 2025 Refinitiv, an LSEG business. All rights reserved.