Just managing

Just Group interim out today, with an upbeat commentary that pleased the analysts. Who are easily pleased, it seems.

  • Solvency Coverage is up to 145% from 141%, but as they say this figure allows for a notional recalculation of TMTP as at 30 June 2020, and without it the SCR would have fallen to 123%, see p.61.
  • Page 8 shows that the TMTP (a regulatory asset that bolsters a firm’s balance sheet) increased from £1,891m to £2,201m). There is no explanation for the increase that I can find in the report.
  • They claim that “movements in the financial markets have had limited impact to date on the Group’s capital position”, but then perversely note that credit downgrades have affected over 16% of the Group’s corporate bond portfolio.1
  1. See p.7: “£490m of our portfolio has been downgraded by at least one letter, and of this, £132m has been downgraded to sub-investment grade.”