(Alliance News) - Life and pensions consolidator Phoenix Group Holdings PLC on Thursday said its cash generation for 2019 is ahead of target.
Phoenix said it has generated GBP707 million of cash in 2019, exceeding the upper end of its GBP600 million to GBP700 million target. In 2018, cash generation amounted to GBP664 million.
It also continued to meet, or exceed, customer service metrics, it said, and remains on track to deliver the GBP1.2 billion total synergy target for its Standard Life Assurance purchase.
Phoenix acquired the Standard Life Assurance unit from wealth manager Standard Life Aberdeen PLC in 2018 for GBP1.97 billion. Phoenix became one of Europe's largest consolidators of heritage life funds following the deal, and also has an ongoing Strategic Partnership with Standard Life Aberdeen.
The FTSE 100-listed company generated incremental long-term cash of GBP440 million from new business, comprising GBP205 million in cash generated in the nine months to September-end and GBP235 million from the GBP1.1 billion of bulk purchase annuity liabilities contracted year-to-date.
"This trading update further reinforces Phoenix's conviction in its business model and its capacity to generate cash, deliver resilience and exploit multiple avenues of growth to deliver long-term sustainable cash generation, not just today but in the years ahead," said Chief Executive Clive Bannister in his Capital Markets Day statement.
Phoenix Group shares were marginally lower at 733.30 pence each in London on Thursday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Phoenix Group Holdings (PHNX)