7th May 2020 11:12
(Alliance News) - Phoenix Group Holdings PLC said Thursday it continues to target cash generation between GBP800 million and GBP900 million in 2020.
The FTSE 100-listed life insurer and pensions consolidator has also committed to paying its 2019 final dividend of 23.4 pence.
Chair Nicholas Lyons said: "Phoenix recognises the importance of its role in society and we are passionate about being a good custodian of our customers' savings. The board also recognises that dividends are an important income stream for retail savers and the funds they invest in. The decision to recommend payment of the 2019 final dividend has been taken following extensive work, including assessing the impact of very severe scenarios on our solvency position, and only after ensuring we have sufficient capital to protect our customers' interests."
At April 24, Phoenix's Solvency II surplus stood at GBP4.0 billion, up from GBP3.1 billion at the end of 2019. The company's capital coverage ratio improved to 172% from 161% over the same period.
In the first quarter, Phoenix saw GBP100 million of new business, with GBP58 million from UK Open and Europe businesses and GBP42 million from bulk purchase annuities.
Chief Executive Andy Briggs said: "The resilience of both Phoenix's operations and its balance sheet has been demonstrated during this period of significant market volatility.
"In these extraordinary times, Phoenix is taking significant steps to support and protect its customers, colleagues and the communities where we operate. We remain focused on delivering cash, resilience and growth and are on track to complete the acquisition of ReAssure in July."
Phoenix said 98% its GBP20 billion debt portfolio remains investment grade, with only 15% at BBB.
Shares in Phoenix Group were 3.9% higher in London on Thursday at 591.60 pence each.
By Paul McGowan; [email protected]
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