23rd Aug 2018 08:55
LONDON (Alliance News) - Insurer Phoenix Group Holdings PLC on Thursday said it expects to exceed previous cash generation targets, as it reported a narrowed interim loss.
For the six months to June, Phoenix's pretax loss was GBP42 million, compared to GBP69 million a year prior, as it reported a more positive change in investment contract liabilities and lower expenses, despite a swing to a negative investment income.
Phoenix's net investment income was a negative GBP56 million from a positive GBP2.39 billion a year ago, though net premiums written doubled to GBP842 million from GBP487 million.
Cash generation was GBP349 million in the period, down from GBP360 million a year prior, but Phoenix said it expects to beat its target of cash generation of between GBP1.0 billion and GBP1.2 billion for both 2017 and 2018 combined.
Phoenix's solvency II surplus was GBP2.3 billion as at June 30, from GBP1.8 billion at the end of December, while its shareholder capital coverage ratio was 180% at June's end from 164% at the end of 2017.
The company is paying an interim dividend of 22.6 pence a share, compared to 25.1p a year earlier and flat on its final dividend for 2017.
Phoenix said it was a "very successful" first half of 2018, in which it made the "transformational" GBP2.9 billion acquisition of Standard Life Assurance and also announced a partnership with Standard Life Aberdeen PLC.
Looking ahead, Phoenix said Standard Life Assurance will open up new business opportunities, and it said it is well placed to be the "leading" life consolidator in Europe.
Phoenix shares were 1.1% higher on Thursday morning at 708.50 pence each.
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