Just Group has sold its portfolio of lifetime mortgages to Rothesay Life for £334m.
The retirement firm had previously valued the loans at £493m. Just Group will invest the proceeds from the sale of its equity release portfolio in “a mixture of other fixed interest assets” to back its insurance liabilities.
The sale will result in a net loss of £125m, while the gross IFRS value of the assets that have been sold is £254m.
Just Group said the transaction would “reduce its exposure to UK residential property risk” and improve is solvency by one percentage point.
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