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
