1st May 2014 08:37
LONDON (Alliance News) - Phoenix Group Holdings PLC Thursday said its first-quarter cash generation decreased but said it is on course to meet its full-year cash target.
In a statement for the three months ended March 31, Phoenix said first-quarter cash generation fell to GBP235.0 million from GBP410.0 million. Cash generation was driven largely by dividends from the life companies, together with GBP21.0 million received from the sale of BA(GI) Ltd and other receipts, Phoenix said. Total holding company cash increased to GBP1.20 billion from GBP995.0 million over the course of the first-quarter.
"We have continued our strong 2013 performance into the first three months of 2014, delivering a further GBP235 million of cash generation. We are on track to meet our full year cash target," Clive Bannister, chief executive, said in a statement.
Phoenix has a target of generating between GBP500.0 million and GBP550.0 million in cash in 2014, excluding the GBP390.0 million sale of Ignis Asset Management to Standard Life Investments in March.
Bannister said the regulatory approval process for the divestment of Ignis is progressing and said Phoenix expects the deal to be completed by the end of the first half of the year.
Meanwhile, Phoenix said it is yet to receive further details regarding the scope of the Financial Conduct Authority's review into the fair treatment of long-standing customers in life insurance.
A briefing to a UK national newspaper of the review by a senior member of the regulator caused a massive sell-off in life insurance stocks in March.
"We look forward to engaging with the FCA review on the fair treatment of long-standing customers in life insurance and believe our initiatives demonstrate best practice in this area," Bannister said.
Phoenix Group shares were Thursday quoted at 696.10 pence, up 1.9%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Phoenix Group Holdings