It has been a busy year already for Phoenix Group, which reported the sale of its Ark Life Assurance Company DAC unit to Irish Life Group Limited only last month. Today, the group has revealed its results for the H1 2021 period.
Read more: Phoenix Group announces £197 million sale
It was a strong half-year for the business which saw its cash generation more than double to £872 million, up from £433 million in H1 2020. Phoenix Group highlighted that this figure reflects the scale of the enlarged group and ensures it is on track to deliver at the top of its full-year target range for 2021 - £1.5 billion to £1.6 billion. Meanwhile, the group’s operating profit rose from £361 million in H1 2020 to £527 million in H1 2021.
H1 2021 also saw the business deliver £412 million of new business long-term cash generation, which comprises £206 million completed in H1 2021 and a further £206 million subsequently completed in July 2021 through an additional c.£1 billion buy-in tranche of the Pearl Pension Scheme. This is up from £358 million for H1 2020.
Commenting on the results, Phoenix Group CEO, Andy Briggs said that the group has made further strong progress against its stated focus on cash, resilience and growth. He highlighted the strong cash generation of the business, the maintenance of a resilient balance sheet and its 15% growth in new business long-term cash generation.
“I am also pleased with the strategic progress we made in the period,” he said. “Our ownership of the Standard Life brand will support our Open growth strategy, while the disposal of Ark Life will maximise value for shareholders and simplify our European operations. We remain fully committed to our sustainability agenda, which is aligned with our purpose of ‘helping people secure a life of possibilities’.”
He noted that Phoenix Group has made good progress against its sustainability targets, including directing almost £800 million of long-term investment into ESG-related projects and that the group remains well placed to support the UK to build back better and greener.
Briggs added: “We look forward to continuing to execute against our strategic priorities in the second half of the year as we build on our position as the UK’s largest long-term savings and retirement business.”
