Phoenix Group Exceeds Expectations for 2023 Cash Generation

By Elena Vardon

Phoenix Group Holdings, a consolidator of life insurance and pensions, has exceeded expectations in the first half of the year, positioning itself to deliver cash generation at the upper end of its projected range for 2023.

For the six months ending June 30, the company reported total cash generation of £898 million ($1.11 billion), surpassing last year's £950 million and beating the consensus forecast of £733 million.

Phoenix Group had initially forecasted cash generation to be between £1.3 billion and £1.4 billion for the entire year.

In addition, incremental new business long-term cash generation for the period reached £885 million, well above the previous year's £430 million and the consensus estimate of £519 million.

The shareholder capital coverage ratio decreased slightly to 180% compared to 189% in the previous year. However, analysts' predictions of 182% were still within range.

"We have full confidence in achieving positive group net fund flows starting from 2024," stated Chief Executive Andy Briggs. He highlighted that new business net fund flows increased by 72% to reach £3.1 billion during the first half of the year.

The company's board has announced an interim dividend of 26.0 pence per share, indicating a 5% increase from the previous year and aligning with consensus expectations.