Insurer Phoenix Group forecasts annual cash generation at top of expectations

UK Insurers across the board have recovered ground since 2021

Phoenix Group on Monday forecast annual cash generation at the top end of its expectations, as robust demand in pension-related policies and higher interest rates helped the insurer post a modestly better-than-expected half-year profit.

Insurers across the board have recovered ground since 2021 after being hit by tepid business and pandemic-induced market volatility.

Sun Life of Canada

Phoenix, which specialises in books of life insurance business, said it expects cash generation of £1.3 billion (€1.54 billion) to £1.4 billion for the year and raised its interim dividend by 3 per cent to 24.8p per share.

The company said it would assess if its business growth could fund a “further sustainable” dividend increase for the year.

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Earlier this month, Phoenix acquired closed life insurer Sun Life of Canada’s UK unit for £248 million in its first-ever cash-funded acquisition and said it had more than £1 billion to spend on similar deals.

The group on Monday reported an operating profit of £507 million for the six-month period ended June 30th, ahead of company-compiled analyst expectations of £506 million.

Phoenix had posted a half-year operating profit of £527 million a year ago.

— Reuters