Just Retirement has announced its intentions to float on the Alternative Investment Market to raise £50m.
The specialist UK life assurance group is seeking to raise approximately £50m through an issue of new ordinary shares to institutional investors. The proceeds will be used to provide capital to fund the future growth of the Company and to expand the company’s distribution capability.
Just Retirement, which was established in April 2004 by Mike Fuller, the current chief executive, and certain other members of the senior management team, has financial backing from Langholm Capital.
The company reported total sales, audited, of £297.9m in the year to 30 June 2006, its second year of operation, while in the quarter ended 30 September 2006, the company made total sales, unaudited of £143.1m, over three times the value made in the quarter ended 30 September 2005.
Just Retirement believes that there is considerable potential for growth within its core markets, the total UK annuity market was worth some £7.9bn in the year to 31 December 2005, having shown compound annual growth of some 6% since 2000. The company expects similar levels of growth to continue over the medium term.
Just Retirement’s strategy is to continue to enhance its product offering to take advantage of growth within its core markets and to gain competitive advantage through further development of new products, distribution channels and its technology platform.
Just Retirement has also recently signed a three-year agreement with SAGA to provide advice on equity release products to the SAGA customer base, and agreed to provide enhanced annuity quotes to The Exchange, a leading IFA portal, as the sole enhanced annuity provider at launch of their real-time quote service.
Mike Fuller, chief executive of Just Retirement, says: “The market for financial solutions for people at and in retirement is large and is forecast to grow rapidly. We believe there is a real need to offer tailored products that are adapted to reflect individual circumstances and requirements. We focus on providing high quality products and services to address this demand. I look forward to continuing to lead the company as we grow and develop the business further.”
Bert Wiegman, partner of Langholm Capital, says: “We are delighted with the progress that Just Retirement has made since our investment. The flotation will provide the Company with the capital to take its development to the next stage and supports further growth. We believe that the Company has substantial opportunities and we look forward to continuing to provide our support as a shareholder.”
Deutsche Bank AG, acting through its London Branch at Winchester House, 1 Great Winchester Street, London EC2N 2DB has been appointed as sole global co-ordinator, sole bookrunner, nominated adviser and broker in connection with the offer and admission. Fox-Pitt, Kelton Limited has been appointed as co-lead manager.