Phoenix Group Holdings plc (Phoenix Group) has announced it is considering selling its SunLife Limited (SunLife) business. This decision follows a strategic review.
SunLife, which offers financial protection products to the over-50s market in the UK, reported a post-tax profit of £16 million in 2023.
After the review, the Phoenix Group board concluded that SunLife is no longer core to the group’s strategic focus on becoming the UK’s leading retirement savings and income business.
Consequently, the board has decided to explore a sale, having received several initial expressions of interest from third parties. However, there is no guarantee that a sale will proceed.
Further announcements will be made as necessary.
Phoenix Group confirmed in its recently released full-year 2023 financial results that it has exceeded its cash generation target.
For 2023, the group’s total cash generation was £2.024 billion, up from £1.504 billion in 2022, surpassing the revised target of around £1.8 billion. This figure includes approximately £400 million from the Part VII transfer of Standard Life and Phoenix Life, announced in November.
In addition, the group reported £1.514 billion in incremental long-term cash generation from new business.
Commenting on the latest financial performance, Phoenix Group CEO Andy Briggs indicated progress towards becoming the UK’s leading retirement savings and income business.
“We have achieved our 2025 growth target two years early with £1.5 billion of new business cash delivered by our Standard Life business – a new record,” he said. “We delivered over £2bn of cash generation and maintained our resilient balance sheet.”
Earnings showed a 13% increase in IFRS adjusted operating profit before tax, reaching £617 million, driven by a 27% increase in the Pension and Savings business. New business net fund flows rose by 72% to £6.7 billion, and IFRS loss after tax decreased to £88 million from £2.657 billion in the previous year.
“The next phase of our strategy will see us balance our investment across our strategic priorities to grow, optimise and enhance our business,” said Briggs. “This will support us in delivering the ambitious new 2026 targets we are announcing today.”
Briggs also announced a new progressive and sustainable dividend policy, underscoring confidence in the group’s strategic direction.
