The hefty slide in Just Retirement's (JRG) reported half-year profit isn't as grim as it looks, reflecting an earnings boost driven by tightening bond spreads in 2012. Underlying operating profit fell by a more sedate 7 per cent year-on-year to £47.3m - beating analysts' expectations.
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The group provides enhanced annuities, which offer better payouts than ordinary annuities, to those with health problems and lifestyles, like smoking, that are calculated to reduce life expectancy. But business isn't exactly booming. The operating profit slippage reflected a 14 per cent slide in annuity sales, while total new business sales fell 4 per cent.