Phoenix Group remains on target

Phoenix Group revealed it remains on track to meet 2016 cash generation targets of between £350m and £450m on Thursday, ahead of a presentation for investors and analysts focusing on Solvency II, management actions and future financial reporting.

The FTSE 250 firm confirmed it has already achieved cash generation of £130m in the period to 30 April.

It said it was continuing to undertake management actions to optimise its capital position under Solvency II and increase the amount of free surplus within the group’s operating companies.

On 31 December, the free surplus within the group under Solvency II was £97m, with additional financial assets of £125m held within the group’s captive Bermudian reinsurance business Open Re, which was restructured in 2015.

At its full-year results on 23 March, Phoenix Group announced it had agreed a revised £650m bank facility, reducing interest costs and extending the maturity of its debt.

In addition, it redeemed the residual £6m of tier 1 notes issued by Pearl Group Holdings on 25 April.

The board said it was continuing to examine options to further diversify away from senior bank debt to longer term, subordinated debt.

"Phoenix Group has made good progress so far, despite the market volatility seen during early 2016, with cash generation of £130 million during the first four months of the year,” said group CEO Clive Bannister.

“We remain confident of future opportunities for Phoenix to grow its business through acquisition and continue to believe that the group's specialist operating model positions us to continue to add value for all of our stakeholders."