Just Group plc

Activity
Provider of retirement solutions
Transaction value
€177 million
Acquired
Aug 2008
Sector
Financial Services

Business
JRP Group plc is a specialist UK financial services Group and a leader in the individual retirement income and defined benefit de-risking market. The Group was created in 2016 through the merger of Cinven portfolio company Partnership and Just Retirement.

Strategy
Cinven acquired Partnership, a specialist provider of impaired life insurance products, in August 2008. Cinven's Financial Services team was attracted to the company's proprietary medical and mortality data, unique in the guaranteed income for life industry. This contributed to a significant competitive advantage for Partnership and a strong barrier to entry. Through its proprietary data, Partnership was well positioned to underwrite products for customers with a variety of medical conditions, ranging from minor conditions to heart disease, strokes, diabetes and cancer.

Cinven worked with the management team to broaden and deepen Partnership's distribution channels and expand the range of products offered.

Progress
Following strong operating performance, Partnership floated on the London Stock Exchange in June 2013. The IPO was nine times over-subscribed. Cinven realised 1.9x the cost of investment, while retaining a 49% stake in the business.

Following outperformance against its business plan, Partnership was materially impacted by unexpected UK budgetary reforms announced in March 2014, with new business volumes decreasing significantly ahead of the new regulations which came into effect on 5 April 2015.

In preparation, Partnership focused on positioning itself for growth in the UK retail and defined benefit markets and for international expansion, backed by a £100 million bond issue underwritten by Cinven. In May 2015, Partnership listed the bonds on the London Stock Exchange at par, converting the private placement into a public bond instrument.

In August 2015, the Boards of Partnership and Just Retirement, a UK-based peer, announced an all-share merger, which completed in April 2016 and is expected to realise significant synergies. The merger has resulted in Partnership shareholders owning approximately 40% of the combined Group, with Cinven holding around a fifth of the merged entity. Partnership and Just Retirement raised equity capital amounting in aggregate to around £150 million. As part of this process, Cinven invested a further €20 million.

The Group's management believes that the enlarged entity, JRP Group plc, will be able to accelerate the existing strategy of leveraging its unique intellectual property to write profitable new business in the UK retail, defined benefit, US care and South African individual retirement markets.

In May 2017 the company changed its name to Just Group plc.

Press releases

Read all Just Group plc press releases