Retirement specialist Just Group has reported a 39% slump in underlying operating profit in 2025 to £305m (2024: £504m).
Adjusted profit before tax was £238m leaving an IFRS loss before tax of £118m (2024 profit: £113m).
International Financial Reporting Standards (IFRS) are internationally-recognised accounting rules used by many larger companies.
The group is in the process of being acquired by Bermuda-based insurance company Brookfield Wealth Solutions (BWS) in a £2.4bn deal subject to regulatory approval.
David Richardson, group chief executive, said the acquisition by Brookfield would make a big difference to Just Group.
He said: “The proposed combination with Brookfield Wealth Solutions Ltd will be a great outcome for customers, shareholders and our colleagues. It reflects the strength of the Just platform and the long-term value of the strategy we have developed. We look forward to building on our successful growth strategy and strong culture, as we enter this exciting next phase for Just.”
The group said it deliberately reduced volume last year due to an increasingly competitive Defined Benefit de-risking market.
Industry analysts expect a rebound in the DB market in 2026, driven by renewed demand from sponsors and trustees, and Just's own pipeline, Mr Richardson said.
He said he also believed the retail guaranteed income market offered significant long-term growth potential in the decades ahead.
The acquisition by BWS is expected to complete during the first half of this year.
The fall in underlying operating profit was driven, the group said, by lower new business margins on lower sales, partially offset by higher recurring in-force profit.
Retirement Income sales were down 18% to £4.3bn (2024: £5.3bn) but there was strong growth in Guaranteed Income for Life products such as annuities, partially offsetting a fall in DB sales.