LONDON (ShareCast) - (Sharecast News) - Just Group noted a consultation paper published on Monday, CP 13/18 'Solvency II: equity release mortgages', which it said aimed to develop the regulatory approach to the asset class beyond SS3/171.
The FTSE 250 firm said it "looked forward" to playing a full part in an open consultation, both bilaterally and in conjunction with the Association of British Insurers and the Equity Release Council.

Just Group said its audited capital position at 31 December, as reported in its Solvency and Financial Condition Report, was computed on a basis which was consistent with SS3/17 as originally published

New business was being written on terms that allowed it to continue to comply with SS3/17, it said in its statement.

"Equity release mortgages, also known as lifetime mortgages, are appropriate products for many UK retirees who wish to access value from their homes and a valuable matching asset for our Retirement Income portfolios," Just Group said in its statement.

"Just Group observes that future UK residential house prices will be the result of a number of economic factors.

"We would welcome publication by the Prudential Regulation Authority of a common economic stress test against which both banks and insurers could test their portfolios."

It said a further announcement may be made as appropriate as the consultation process progressed.

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