Phoenix Group Holdings plc has reported robust organic growth in 2023, exceeding expectations and achieving its 2025 growth target two years ahead of schedule.
The financial services company announced new business net fund flows of approximately £7 billion, representing an impressive year-on-year increase of around 80%.
Key highlights from the 2023 performance include workplace net fund flows of approximately £4.5 billion, almost doubling year-on-year.
This growth was driven by the transfer of new scheme assets, including one of the largest workplace schemes tendered in the UK market in recent years.
The capital-light fee-based Workplace business has shown significant strength, contributing to the overall positive outcome.
Phoenix Group’s Bulk Purchase Annuities (BPA) business also demonstrated strong performance, with premiums of around £6 billion written in 2023, compared to £4.8 billion in the previous fiscal year.
Notably, the capital strain for the BPA business was reduced to less than 5%, reflecting effective risk management and capital efficiency.
Commenting on the exceptional results, Phoenix Group CEO Andy Briggs stated, “I am delighted that Phoenix Group has delivered another year of strong organic growth in 2023, with increased new business net fund flows supporting us in delivering £1.5bn of new business long-term cash. This means we have achieved our 2025 new business long-term cash target two years early, reflecting the focus and investment we have put into our growth strategy.”
The positive growth trajectory was further supported by improved performance in the Standard Life branded Pension & Savings and Retirement Solutions businesses.
The company emphasised its commitment to a balanced business mix, leveraging its scale in capital-light fee-based operations and maintaining disciplined growth in annuities.
Phoenix Group’s Full Year 2023 results are set to be announced on March 22, 2024. The company expects its Solvency II Surplus to be slightly below the position reported on June 30, 2023, reflecting continued strategic investments to support sustained growth.
Total Group net outflows, including the legacy Heritage business, have significantly reduced to approximately £(3) billion in 2023, down from £(5.7) billion in the previous fiscal year.
