LONDON (ShareCast) - (Sharecast News) - Just Group reinstated its dividend as the retirement products group reported higher underlying profit boosted by strong sales.

Underlying operating profit rose 9% to £210m in the year to the end of December from a year earlier as retirement income sales increased 25% to £2.7bn.

Adjusted operating profit dipped by £1m to £238m as higher new business profit was offset by a lower operating experience, which includes death rates, assumption changes and in-force operating profit.

The FTSE 250 company recommended a final dividend of 1p a share. Just Group cancelled its dividend in 2019 because of new capital rules for equity release mortgages, which are a big part of its business. The company was then hit by the Covid-19 crisis.

Just Group set a target of 15% annual growth for underlying operating profit over the medium term.

David Richardson, Just Group's chief executive, said: " This is an excellent set of results which demonstrate our ability to generate profitable growth within a sustainable capital model.

"New business premiums, underlying operating profits and underlying capital generation have improved significantly. Furthermore, we have also attained a sustainable level of underlying capital generation and coverage ratio to be in a position to re-commence dividend payments."

Just Group shares fell 0.7% to 83.25 at 08:35 GMT.

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