11th Aug 2021 10:02
(Alliance News) - Insurance company Phoenix Group Holdings PLC on Wednesday said it is on track to deliver at the top end of its full year cash generation target, despite booking a loss in the first half.
Phoenix reported a pretax loss of GBP454.0 million in the six months ended June 30, swung from a profit of GBP611.0 million for the same period last year.
Interim revenue net of reinsurance dropped by 15% to GBP2.10 billion from GBP2.48 billion last year.
As at June 30, Phoenix had GBP304.40 billion assets under administration, a 9.9% drop from GBP337.7 billion at December 31.
The life insurer pointed to a negative investment return on hedging positions, as well as increased amortisation charges on intangible assets and higher financing costs.
However, cash generation in the half year more than doubled, rising to GBP872.0 million from GBP433.0 million.
The FTSE 100 constituent has a guided an annual cash generation target of GBP1.50 billion to GBP 1.60 billion. Based on first-half performance, Phoenix expects to deliver at the top end of this.
"Phoenix has made further strong progress against our stated priorities of cash, resilience and growth," said Chief Executive Andy Briggs.
"I am also pleased with the strategic progress we made in the period. Our ownership of the Standard Life brand will support our open growth strategy, while the disposal of Ark Life will maximise value for shareholders and simplify our European operations."
Back in July, Phoenix unveiled its agreement to sell its long-term savings and retirement firm Ark Life Assurance Co DAC to Irish Life Group Ltd for EUR230 million in cash. In February, it agree to buy the 'Standard Life' brand from Standard Life Aberdeen, which has since rebranded as abrdn PLC.
Phoenix declared an interim dividend of 24.1 pence, up from 23.4 pence last year.
Looking forward, Phoenix outlined "three key priorities" of optimising in-force business, deepening customer relationships and acquiring new customers.
Shares were down 1.5% at 689.41 pence in London on Wednesday morning trading.
By Josie O'Brien; [email protected]
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