Phoenix Group lifts FY cash generation targets

Insurer Phoenix Group said on Monday that it was lifting its full-year cash generation targets after completing the funds merger of its Standard Life and Phoenix Life businesses into a single entity.

The merger leads to a "material" one-off upgrade to its 2023 cash generation targets to around £1.8bn, from around £1.3bn to £1.4bn. As a result, the company’s three-year cash generation target increased from £4.1bn to £4.5bn across 2023-2025.

Chief executive Andy Briggs said: "The completion of the funds merger of the Standard Life and Phoenix Life businesses into Phoenix Life Limited, bringing together 8 million policies, is one of the largest UK insurance Part VII transfers ever completed.

"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."