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Highlights

  • Panmure Liberum’s Barrie J. Cornes issues a BUY rating with a price target of GBp 219, indicating a potential 70.03% upside.

  • Just Group’s underlying operating profit rose 34% to £504 million for FY24, outpacing profit-doubling targets ahead of schedule.

  • Retirement income sales surged 36% year-on-year, with continued growth in shareholder returns and capital strength.

Just Group PLC (LSE:JUSTJ.L), a UK-based provider of life and health insurance solutions, has attracted renewed investor attention after Panmure Liberum’s analyst Barrie J. Cornes assigned a BUY rating with a target price of GBp 219. The rating suggests a 70.03% upside from the current share price of GBp 128.8.

The stock is likely to be buoyed by annual results for FY24 and a confident outlook laid out by management. 

Profits Surge Ahead of Five-Year Target

CEO David Richardson announced that Just Group has already surpassed its goal of doubling profits within five years—achieving the milestone in just three. Underlying operating profit rose 34% to £504 million in FY24, compared to £377 million in FY23. This exceptional performance was driven by higher recurring in-force profit, business scale efficiencies, and robust new business sales.

“We have significantly exceeded that target in just three years and created substantial shareholder value as a result,” said Richardson. The company now aims to continue compounding growth, supported by resilient market conditions and a low-capital intensity business model.

Retirement Income Sales 

One of the key drivers of the company’s performance was a 36% increase in Retirement Income sales, reaching £5.3 billion in FY24 from £3.9 billion the previous year. Although new business margins softened slightly to 8.7%, the company still posted a 30% increase in new business profits at £460 million.

In terms of capital strength, Just Group reported a Solvency II coverage ratio of 204%, up from 197% in 2023. The group continues to manage sensitivities related to interest rates and residential property through investment diversification and management strategies. Cash generation before new business strain increased to £119 million, reinforcing the company’s sustainable growth model.

Returns and Dividends Underscore Shareholder Value

Improved return on equity at 15.3% and a 20% increase in dividend payout to 2.5p per share indicate growing shareholder confidence. Tangible net assets per share also improved to 254p, compared to 224p in the previous year, establishing Just Group as a long-term value generator.