Strength of covenant

Minimal balance sheet risk and strong capital backing

Just’s guarantee to policyholders is governed by various layers of protection built into the regulatory framework. As a South African life insurance company, Just is regulated (for solvency purposes) by the Prudential Authority of the Reserve Bank of South Africa. 

Similarly to other annuity providers, Just must meet the requirements for insurers which include: 

• Continuous valuation of liabilities against assets (Just does this on a daily basis)
• A minimum capital requirement (minimum level of eligible funds to protect policyholders and ensure benefits are not impaired)
• A solvency capital requirement (enough accessible capital to cover a severe 1-in-200 year stress e.g. 40% overnight fall in equities)
• Appropriate systems, procedures and controls to meet these principles and requirements continuously, which is the ultimate responsibility of the Board of Directors.

Just in South Africa carries minimal balance sheet risk, and has additional comfort provided by Just Group’s strong capital backing and governance.