Britain's Just Group reported a sharp decline in annual earnings, with underlying operating profit plunging 39% to £305 million for the year ended December 31. The retirement specialist saw adjusted profit before tax drop to £120 million from £482 million, reflecting weaker performance in a competitive market where the company deliberately reduced volume.

Retirement Income sales fell 18% to £4.3 billion, while new business margins declined to 5.7% from 8.7% due to increased competition, tighter spreads, and unfavorable business mix. CEO David Richardson confirmed the company reduced volume in the Defined Benefit market during H2 2025 as it became increasingly competitive.

The decline comes as Just Group prepares for its £2.4 billion takeover by Canada's Brookfield Wealth Solutions, expected to complete in H1 2026. Despite current challenges, the company noted its tangible net assets rose to £2.7 billion from £2.6 billion, marking 37% growth over three years. Industry analysts expect a rebound in the DB market in 2026.