Annuity and retirement specialist Just Group has reported a 154% jump in first-half profits boosted by bumper annuity sales and higher new business income.

The figures published this morning were for the six months to the end of June.

The company said it was confident of beating previous guidance for the full year, as its section of the retirement income market benefited from the rise in interest rates.

Underlying operating profit was £173m compared to £68m for the same period in 2022.

It said retirement income sales more than doubled to £1.9bn, up from £0.9bn a year earlier.

That in turn drove a 112% increase in new business profits to £161m, rising from £76m.

It said the rise in interest rates over the last year and so far in 2023 "has a positive effect on both the defined benefit and retail guaranteed income for life markets", with DB sales up 149% and retail sales up 54%.

The firm’s capital coverage ratio climbed to 204%, compared to 199% as at 31 December 2022.

David Richardson, chief executive, said: "We are highly confident that we will comfortably exceed our 15% profit growth pledge this year.

“Our DB business is going from strength to strength and I am delighted that our retail business has returned to growth.

“We are growing sustainably and are exceptionally well positioned to continue benefiting from the positive drivers and favourable demographics supporting both of our principal markets.”