8th Sep 2025 08:50
(Alliance News) - Phoenix Group Holdings PLC on Monday said it plans to change its name to Standard Life PLC next year after reporting better than expected operating profit but total cash generation below market hopes.
The London-based retirement savings firm swung to a pretax profit of GBP8 million in the first half of 2025, from a loss of GBP669 million a year prior.
Total income declined 30% to GBP8.60 billion from GBP12.33 billion. Adjusted operating profit shot up 25% to GBP451 million from GBP360 million, while operating cash generation improved 9% to GBP705 million from GBP647 million. Total cash generation declined 17% to GBP784 million from GBP950 million.
Panmure Liberum analyst Abid Hussain said adjusted operating profit was 3% ahead of expectations, but total cash generation was 3% below consensus.
In response, shares in Phoenix Group fell 5.0% to 636.35 pence each in London on Monday morning. It was the biggest faller in the FTSE 100, which was up 0.1%.
"This is a strong first half performance with progress against all key financial metrics we use to drive the business, demonstrating continued momentum towards our 2026 targets," said Chief Executive Officer Andy Briggs commented.
The shareholder capital coverage ratio improved to 175% from 172%, the solvency II surplus climbed 2.9% to GBP3.6 billion from GBP3.5 billion.
Phoenix lifted its interim dividend by 2.6% to 27.35 pence per share from 26.65p.
In addition, the firm announced it plans to change its name to Standard Life PLC in March 2026.
This brings "our most trusted brand to the forefront and demonstrates our commitment to helping customers secure a better retirement," CEO Briggs said.
Phoenix bought the Standard Life brand from what is now Aberdeen Group PLC - and which previously had been called Standard Life Aberdeen - back in 2021. The brand traces its history back to 1825 in Edinburgh.
Looking ahead, Phoenix expects mid-single digit growth in operating cash generation for the full-year. Further afield, it predicts GBP1.1 billion in adjusted operating profit in 2026.
The company is targeting GBP160 million of cost savings in full year 2025, up from GBP125 million previously indicated.
By Jeremy Cutler, Alliance News reporter
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