Long-term savings and retirement business Phoenix Group now expects to deliver approximately £1.8 billion of cash generation this year, following the finalised funds merger of its Standard Life and Phoenix Life Assurance Limited businesses into Phoenix Life Limited.
In its announcement, Phoenix Group said the completed Part VII transfer creates additional free surplus within its life companies. As a result, the group’s 2023 cash generation target has been upgraded from £1.3-1.4 billion to around £1.8 billion.
“The completion of the funds merger of the Standard Life and Phoenix Life businesses into Phoenix Life Limited, bringing together eight million policies, is one of the largest UK insurance Part VII transfers ever completed,” noted chief executive Andy Briggs.
“This reaffirms Phoenix Group’s position as the UK’s leader at delivering cost and capital synergies and generating value for customers and shareholders. This funds merger enables us to materially upgrade our cash generation targets and creates further balance sheet optionality for the group.”
According to Phoenix Group, it expects to have significant surplus cash at its holding company at the end of 2023.
The group stated: “Phoenix Group looks forward to presenting an evolved financial framework with enhanced disclosures and an update on capital allocation in the near term, alongside its full-year 2023 results announcement in March 2024.”
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