6th Dec 2022 09:18
(Alliance News) - Phoenix Group Holdings PLC on Tuesday said it expects to achieve strong organic growth in 2022, with GBP1.2 billion of new business to be delivered in the year.
The London-based insurance services provider said organic growth will be achieved by acquiring new customers, primarily through its Standard Life brand, and by meeting more of the "evolving needs" of existing customers.
Phoenix said its GBP1.2 billion long-term cash generation comprises around GBP900 million from its Retirement Solutions business, and GBP300 million from its Pensions & Savings, Europe and SunLife businesses.
The company added that it remains on track to deliver cash generation at the top end of its target range of GBP1.3 billion to GBP1.4 billion in 2022.
Within Phoenix's Pensions & Savings, the Workplace business is expected to deliver positive net fund flows of GBP2.0 billion in 2022, up from GBP200 million in 2021, and a 40% increase in incremental new business long-term cash generation to GBP200 million from GBP139 million the year prior.
Phoenix said this is due to 68 new workplace schemes that were won in 2022, with aggregate assets of around GBP2 billion.
"It is shaping up to be another outstanding year for Phoenix Group," said Chief Executive Officer Andy Briggs.
Phoenix announced a new target for GBP1.5 billion of incremental new business long-term cash generation by 2025 due to the organic growth, comprising GBP1.0 billion from Retirement Solutions and GBP500 million from Pensions & Savings.
Phoenix said the new target will support enable the group to generate net growth in its long-term free cash from 2025, which can support future dividend growth.
Phoenix shares were up 1.3% to 604.00 pence on Tuesday morning in London.
By Jaskeet Briah, Alliance News reporter
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