Pensions firm Phoenix doubled its long-term cash generation in the first half of 2023, despite a “challenging market environment”.
The company’s half year results, published today (September 18), showed new business long-term cash generation, a measure of future profitability, increased 106 per cent to £885mn, compared with £430mn in the first half of 2022.
This comprised of £665mn from its Retirement Solutions business (HY22: £282mn) and £220mn from its capital-light fee-based businesses (HY22: £148mn)
Flows into its funds increased by 72 per cent to £3.1bn from £1.8bn meaning Phoenix is now on track to deliver positive net fund flows in 2024 for the first time in history.
Phoenix CEO, Andy Briggs, said the company has delivered “strong organic growth” but also praised inorganic growth through the purchase of Sun Life of Canada UK adding there could be more mergers and acquisitions on the horizon.
Sun Life UK's life and pension policies and annuity blocks for UK Clients move to Phoenix Group in April this year.
Briggs said: “Our impressive first half performance has enabled the board to declare an Interim dividend that is a 5 per cent year-on-year increase and executing our strategy will support us in delivering a dividend that is sustainable and grows over time.”
tara.o'connor@ft.com
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