22nd Oct 2015 06:55
LONDON (Alliance News) - Phoenix Group Holdings on Thursday said it is on track with its cash generation targets for both 2015 and the longer term, as it reported GBP155 million of total cash generation in the year to date.
Phoenix is targeting between GBP200 million and GBP250 million of cash generation in 2015, which is part of a longer term target of generating GBP2.8 billion from 2014 to 2019.
Of the GBP155 million generated so far in 2015, Phoenix said that GBP137 million was achieved in the nine months to September 30, followed by a further GBP18 million during October.
"I am pleased to confirm that we are on track to meet our 2015 cash generation target range, notwithstanding recent market volatility," Chief Executive Clive Bannister said in a statement.
Phoenix is balancing its goals for generating cash with crucial regulatory talks about the implementation of Solvency II insurance rules due to come in to force across the European Union from January 1, 2016. The Bank of England's Prudential Regulation Authority is reviewing the group's internal model for the application of the rules, and Phoenix expects to find out if it is approved in early December along with other firms.
The group said it expects to be "well capitalised" under the incoming rules, as it continues with the process of "optimising" its balance sheet as part of its overall preparation.
"As the impact of reforms to the UK life industry become clearer, including the new Solvency II regime, I believe that attractive acquisition opportunities will become available. Our leading operational platform and recent investment grade credit rating position Phoenix to continue to generate value for both policyholders and shareholders from future consolidation in our market," Bannister said.
By Samuel Agini; [email protected]; @samuelagini
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